Although many people are skeptical about the lack of personal advice, an online loan offers numerous advantages, particularly through often lower interest rates. Here are the most important facts that you should pay attention to.
Step by step to online credit
When taking out an online loan, the steps are comparable to those for a conventional loan. Transparency and security should always be the top priority (NETZ-TRENDS.de reported on this several times).
The first step is to compare different loan offers to find the best deal in terms of interest rates, term and conditions. Comparison portals provide an initial overview of possible providers and conditions. Entering detailed information during the comparison process leads to more accurate results.
Based on these conditions, an application can then be submitted to the desired provider. The loan application can be easily filled out via the bank or lender’s website. As part of the Loan application for an online loan Certain documents such as identification papers, employment contracts or bank statements must be submitted, often by uploading them to the lender’s website. Identity verification, for example via video ID verification procedures such as VideoIdent.
The lender checks the creditworthiness based on the information in the application and the submitted documents and carries out a Schufa query. Both the term of the loan and the amount of the installments influence the interest rates. After the check, the lender decides whether and under what conditions the loan will be approved. Online lenders often make a decision more quickly because many processes are automated.
If the loan is approved, the applicant receives the loan agreement, which is usually signed digitally. After signing, the loan amount is transferred to the applicant’s account and the first installment is due at a set time.
The main advantages of online loans
Online loans offer significant advantages. One of the biggest advantages is the time saved. The digital application process makes the borrower independent of the opening hours of a bank. Processes are automated, which leads to faster approval.
Another advantage is the potential cost savings. Online lenders can offer lower interest rates because they require less staff and do not need to maintain branches. These cost savings can be passed on to borrowers.
The online loan also offers flexibility. Although there is no personal customer advisor, the service is not limited. Questions or concerns can be clarified online or by phone. An online loan can be designed just as flexibly and individually as a conventional loan.
An online loan therefore offers a convenient and often more cost-effective alternative to traditional borrowing. It is worth comparing the offers and processes carefully in order to find the best conditions.
The history of credit
The history of credit is closely linked to the development of money and finance. The first documented lending transactions were carried out in Mesopotamia around 3000 BC, in which seeds were lent to farmers. This practice developed further in ancient Greece, where money changers and pawnbrokers lent money for a fee. These early forms of credit laid the foundation for the later credit system.
In the Middle Ages, lending was often associated with high risks, as lenders were often persecuted. Nevertheless, loans were necessary to finance the lavish lifestyles of rulers and wars. Despite social ostracism, loans played an important role in the economy. In the 15th century, Christian institutions began to set up credit funds to protect Christians from high interest rates. which leads to a more systematic form of lending led.
