Loans are taken for a variety of purposes, such as a construction loan, renovation loan, car loan or as a loan with a low sum to bridge a financial bottleneck. More and more people are making loans online, which has the advantage that the loan is available faster and the borrower saves the way to the bank. Unlike loans, which are applied for at a branch bank, the online loans are usually characterized by very low interest rates. Even with insurance, the trend is online.
The potential of online loans
According to a survey by digital association hydrotech, there is a clear trend towards online and online insurance. The hydrotech chart shows that a large proportion of people online have opened an account, taken out insurance or taken out a loan. The survey showed that many people who have not yet used these services online can now envisage signing up online in the future.
Handling money is changed by innovative offers
The Vice President of hydrotech, Christian Theiss, says that today almost all financial transactions can be handled via the Internet. Young companies in the technology sector, known as fintechs, operate in the financial sector, providing innovative services that change the way they handle money. hydrotech interviewed 1,007 consumers aged 14 and over whether they have already done financial transactions over the Internet. Of the respondents already 7 percent have applied for a loan online, of them praised 39 percent more convenient application compared to the bank.
Benefits of Online Loans
Borrowers interviewed by hydrotech appreciate credit over the internet for a variety of reasons. They praise the better conditions, because the interest rates are significantly lower than for loans that are requested through a bank. The reason is obvious: Different banks are only active online, they save costs because they do not operate branches. They pass this advantage on to the customers in the form of low interest rates. Borrowers save time when borrowing online, because they can complete the loan application online and send it with a mouse click. The award of the loan is decided quickly; The applicant will receive a response shortly after the application has been received by the online bank. Of the respondents, 16 percent said they opted for an online application for a loan because their loan application to a bank was denied. Many borrowers not only apply for loans through the PC, but they use an app and apply for the loan via tablet or smartphone. If you would like to apply for a loan online, you are independent of the opening hours of a bank, because online banking is possible around the clock. If you need help with the application, you can use the video chat.
Many possibilities with the internet
The internet offers many opportunities for financial transactions. At any time you can keep track of account activity and make transfers quickly and easily, but you can also open current accounts or change accounts, apply for loans or take out insurance. The internet allows you to compare the terms and conditions of different providers for loans. As a private person, you can also become a lender yourself and receive attractive interest. Various credit marketplaces have emerged, bringing together private individuals willing to lend. Anyone wishing to take out a loan will make a credit request and then receive an answer from those who wish to place a loan. Such loan marketplaces are a great way for borrowing when a loan application has been rejected by a bank.
Conclusion: Increasingly, loans are taken over the Internet or insurance completed online. The conditions are more favorable than with the branch banks, the lending runs much faster than with a bank. If you decide to apply for a loan online, you should use the comparison and get an overview of the interest rates at the various providers. The handling of money is being fundamentally changed by technology companies in the financial sector – and that will continue to be felt in the future!