Basically, as a loan seeker, you have two choices as to how you can take out a loan. On the one hand, of course, virtually every bank with a branch network still offers the opportunity to apply for a loan at the local branch office.
On the other hand, for more than ten years there has been the opportunity to apply for a loan online through the websites of numerous banks. For many people looking for a loan, they still have the legitimate question as to which of the two options is better and why, in most cases, it is an advantage to take your loan online today.
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First of all, we would like to briefly explain in which cases the loan that you can apply for at the Bank’s office is the appropriate option. In the meantime, this is only the case under one condition, namely that you, as a loan seeker, would like to receive intensive advice in connection with borrowing. This will rarely be the case when taking out an installment loan, but especially in the area of mortgage lending many customers still feel the need to keep information and advice from the bank.
Since a so-called on-line loan, which is applied for on the Internet, does not include this advice, the branch loan, in this case, is actually still the better solution. However, there is another tendency clearly that fewer and fewer customers a consultation of the bank in Want to claim. Instead, they are above all favorable conditions and an uncomplicated borrowing important. Therefore, more and more credit seekers are opting for an online payday loan direct Bridge .
What speaks for the online loan? Mostly cheaper conditions!
A big advantage of online loans is that they are usually available on cheaper terms than branch loans. This is best illustrated by banks that both have a branch office network and a website that clients can use to apply for loans. In a direct comparison, the same bank almost always offers their online loans on more favorable terms than their own branch loans. This difference is basically the rule, even if you compare different loan offers from different banks. On average, you’ll need to pay between three and four percent less on an online loan than if you apply for the same type of loan at the office. The reason is simply that the Internet is for the banks themselves the much cheaper distribution channel, as the less costly staff is needed. Many credit institutions pass on this cost advantage to their customers and can thus offer loans that are taken up online more cheaply.
Easy and quick application as a further advantage
Another advantage of online credit is that it is fast, easy and effective. While you first have to make an appointment when borrowing at the office, and they often have a 30- to 60-minute credit conversation, applying over the Internet is much faster and easier. In addition, you have the option of making a loan application around the clock if you would like to. Required documents, such as salary certificates or employment contracts, can now usually be scanned and sent to banks online.
More and more frequently, you do not have to go to the door to apply for an online loan, because the usual post-office procedure is now being replaced by more and more credit institutions through the so-called web or video ident procedure. Simply put your ID card in the camera so the customer service representative can look at it and make a note of the data. But even if the bank is still using the post -ident process, this, of course, saves a lot of time, as if you take the loan in the office.
Better comparability of online loans
Another advantage of online loans is that there is a much better possibility of comparison with other offers. While many commercial banks, especially smaller Volksbanks and savings banks, are often not very transparent about their loan offers, this rarely applies to online loans. Here, for example, you can use comparison computers to find the cheapest offers quickly and effectively.
In the overview, it is mainly the following advantages that make borrowing via the Internet stand out:
- Mostly cheaper conditions
- Fast and effective application at any time
- Better comparison possibility of the offers
Which loans are offered online?
If you are fundamentally enthusiastic about the idea of taking your next credit online, you might still wonder which types of loan can be applied for via the internet. Basically today, there are almost all types of credit that you can apply for in the respective bank branch, which are optionally or additionally available online. These are, for example, the following loan variants:
- credit Facility
- installment loan
- call facility
- credit line
- Real estate loans
- policy loans
In summary, 95 percent of general credit requirements can certainly be covered by an online loan. This applies even today to more complex types of financing, such as real estate financing. If you do not need extensive advice regarding the real estate loan, you will probably find better conditions online than with the branch loan, which of course is very advantageous especially for residential real estate loans. If you can then have all the documents needed by the lender at hand and submit them, it often takes between the time you apply for the loan on the Internet and the transfer of the loan amount to your checking account between three and five working days.