We know that, like other markets, the financial one is in constant evolution. Internet loans even more so.
Today on the Internet we will find great competition between the most common loans in banks and online loans through a web platform and these gain more followers daily. Why will it be?
To find out what the level of this war is and to know the reasons why the loan requested online does not stop gaining followers, we explain it to you in this article, where you will also discover alternatives that the market offers you to obtain a loan and paper that the internet has in this range of possibilities.
The loans online are becoming more popular by different factors, aspects such as speed or comfort are very attractive to consumers today. There are no official figures that can confirm the demand for products.
Financial institutions such as personal loans are greater in the network than in the analog field, but what is clear is that they do not stop gaining followers, and institutions of the weight of financial institutions have been forced to make changes due to the loss of customers .
Table of Contents:
1. What makes internet loans attractive?
Loans on the internet are increasingly attractive to the average consumer, one of the reasons is that people are increasingly adapted to the digital world and the use of mobile devices is the order of the day. In addition, today anyone knows how to use a mobile device and can use it to request a loan.
- Convenience when applying
- The value of the time factor
- How quickly the money reaches your account
- Tighter interest rates
- Less pressure for repayment
If something has internet, it is that it makes the procedures much more comfortable, a mobile device allows you to request loans online from anywhere and also saves you from having to travel to a physical branch and endure the long queues that there are usually to wait for your turn.
All this is directly related to the time factor, if you can request your financial product from anywhere with an internet connection, you don’t waste one or several hours traveling to a physical point to deliver documentation that you have previously had to find, save and print.
The money reaches your account in less time.
When you request a loan in a bank you have to present documentation that reveals your personal data and also your financial data, this makes the confirmation work double and therefore takes longer to give the order to send money to the applicant’s bank account. When ordering online it is only necessary to provide personal documentation that is supervised in a few minutes, in fact, digital platforms can send you the money in just 15 minutes .
It is likely that you will have to wait more than a quarter of an hour to enjoy your loan, the reason is that the money is sent to the account of a bank and some banks take between 24 and 48 hours to make the income effective, but still thus this process is faster than the traditional one based on the presentation of documents that show that you are solvent.
Money in a few minutes is more important.
To the point that a product as demanded as internet loans has become one of the references of digital platforms and that it practically does not appear in the promotions of banks, which know that in speed they are currently behind the loan issuing pages.
Both online and offline loans are associated with certain repayment terms and interests that are equivalent to the amount that must be paid to enjoy that money in advance and that correspond to a percentage of the amount borrowed. Although banks are increasingly flexible, normally the value of these interests is lower on platforms than in banks.
The time and form of the return.
Deadlines are very similar in the digital and analog systems, but they can become a real burden when an unforeseen economic event arises and you have an obligation to fulfill.
When this happens and the loan has been requested at a bank, you will surely have to face the payment of late payment interest that will be automatically charged to your account and that will appear when you are late in payments.
If you have requested the money advance on a digital platform, you can request an extension, although you will have to do it as far in advance as possible.
The moment you ask for an extension you have to get used to the idea that you must comply with the payment for two reasons, the first because you have been granted a second chance and the second because this situation is causing a loss to a platform that has placed trust in you without having analyzed your financial situation .
If an applicant does not comply with the extensions granted by the platform, they will surely have to face sanctions that affect their finances and their name may be registered in a list of defaulters such as the ASNEF, a situation that closes the doors to obtain a loan or to finance a product. In fact, banks almost never grant money advances that serve to pay off other debts.
2. What medium is more demanding?
Very tough demands can cause users to abandon the idea of requesting a loan and in this regard, digital platforms that offer loans over the internet have better conditions than banks. When you apply for personal loans in banks you have to present documentation that shows that you are solvent.
- The payrolls of the last months
- The employment contract
- Statement of income
- VAT declarations
The purpose of these documents is to show that you have a regular income and that you can repay the loan. Although banking entities have greater economic capacity than digital platforms, they assume less risks and only grant financial products based on money advances when they are sure that the amounts will be returned with their corresponding interests.
These procedures can become a burden for many users who at that time do not have a stable job or who need the money with an urgency that prevents them from gathering all this documentation, printing it and presenting it at a branch.
It is true that they can count on a guarantor who is a person from their environment and will answer for them in case of not being able to assume the loan, but not everyone has this possibility.
With digital platforms that happens.
It is only necessary to present the National Identity Document (DNI), prove that you reside in Spain, provide an email address and a mobile phone number along with the number of a bank account that you own and that will be the place where the money will be deposited.
When people need fast and easy loans and do not have great resources, they only have to compare the requirements demanded by banks and platforms, complying with the second case is much easier because all the information is at hand and can be sent in a online in a few minutes. This factor also makes the loan online not stop gaining followers.
3. Finding an affordable loan?
On the internet, loans will always be cheaper. Digital platforms have to survive in a double competition, on the one hand, they compete against the classic banks and on the other they have to face the rest of websites that offer loans over the internet with similar conditions.
This context has caused many of them to offer their first clients personal loans at 0% interest, this promotion makes it a totally free product and represents a unique opportunity for the consumer, especially for those who are going through a difficult economic situation .
This type of offer is practically impossible for you to find in a bank, which will always charge some type of interest on each loan granted. Banks work like private companies and, as with digital platforms, they also compete hard with each other, lowering the demands of their products, although they are less flexible than digital platforms because they do not have an urgent need to find new customers and retain them.
4. Repaying a loan early?
In the economic field there are all kinds of situations and just as unforeseen events can arise that make it difficult to repay a loan, it can also happen that you receive extra money that makes you pay off your debt at once and your finances are clean.
If you have requested a loan on a platform and you want to pay a high amount to cancel the repayment installments of your loan, you will not have any problem.
But if you do it in an entity, it is likely that you will have to pay a penalty for having broken a return contract that required specific payments and on certain dates. This is another factor that gives advantage to online loans .
5. Should digital platforms improve?
Although it is impossible to deny the rise of the internet, there are still some factors in which banks are superior and act as a hook for new customers.
The first and most important of these is the amount that can be granted in each loan, a bank has a much greater economic capacity because its number of clients is very high and because most of them have been operating for more than ten years.
On the internet you can find platforms that provide you with amounts greater than 1,000 euros, but these figures are reserved for those users who have carried out several operations on those websites and have shown that they comply with the agreed return periods, regardless of whether they short term or long term.
The other aspect in which entities are more attractive is the security that surrounds internet loans, experience is always a degree and most banks have been in the sector for several years. In addition, they have a physical headquarters and if there is a problem the client can speak with a person live and direct, this does not happen with the websites that operate on the network.
Another option is to check their social networks and see the behavior of their users by analyzing the comments they post and the number of “likes” each publication has.
One trait that is very significant is the quality of customer service. These websites must have a customer service phone number, an email address available to them and access to an online chat with short waiting times.
The final decision always corresponds to the user who needs money in advance. It is a fact that online loans do not stop gaining followers and generally the conditions are more interesting than those offered by banks that try to adapt quickly to digital environments. The competition is increasing.