Increasingly, credit portals and loans are advertised from the internet. Whether in magazines, online or even in television advertising online credits are ubiquitous. Today, anyone who thinks of applying for a loan automatically thinks of looking on the internet. Even 10 years ago, the only possible way was to your own house bank, today the situation looks different.
The internet brings numerous advantages for the borrower. Through the online loans, the banks are for the first time in a real competition with other loans. The internet not only compares the loans of individual banks with each other, but is also still the breeding ground for online banks that offer only online loans.
Tip of the editors
Even if you want to take out a loan at your local bank, it is absolutely recommended to use a loan calculator online in advance. This is free of charge, obliges you to nothing and provides you with a transparent overview with little effort. With the conditions you have found for online loans on the internet, you can approach your bank consultant in a personal conversation.
Direct banks have the advantage of not having to operate bank branches in many locations. Costs incurred by bank branches, on-site staff and property maintenance must be covered by revenue from financial products. The online bank, on the other hand, lives 100 percent from its web presence and saves on many ancillary costs here. These savings can be passed on with the services, by more favorable conditions to the customer.
Advantages and disadvantages at a glance
- Interest rates: often more favorable conditions
- Choice: no ties to a specific bank
- Transparency: good transparency and comparability through loan calculator
- Speed: often faster processing than at the branch bank
- Contact: no face-to-face contact with customer service representative
- Symbiosis: possible symbiosis through several financial products cannot be used
- Effort: borrower is burdened with more research
Use, for example, our loan calculator and enter the necessary key data for your desired loan. Within a few seconds you get an overview of all the offers that are available. Directly out of the comparison, you can apply for your online loan.
In the next step, you will receive all the necessary documents from the selected bank by mail. Fill out these documents, submit all the necessary documents and identify yourself by postident procedure.
Take out loans online – new technologies make it even easier
Even if numerous banks, especially branch banks with online loans, still stick to the postident procedure, other banks show that it can be done differently. The fully digital loan application is becoming more popular.
The customer still uses the credit comparison for online loans. Once he has found the right product, he goes to the provider's site as usual. There he fills out all forms on the screen, which are necessary, in order to be able to take up an on-line credit. Also not new is that he sees the loan offer immediately on the screen, respectively receives it by e-mail. At this point, online loans usually came to a media rupture.
Through direct access, the applicant allows the bank to access his current account once. This eliminates the need to copy or print out and send account statements. In the next step, it uses the electronic signature to make the contract legally binding. Finally, they legitimize themselves in the videoident process with their valid ID card or passport with confirmation of residence.
No more paper, no more trips to the post office – it couldn't be more convenient to apply for a loan online.
Take out an online loan with a branch bank
Branch banks also offer online loans, which is not uncommon. For the consumer, however, there is a hidden pitfall here. The loan comparison shows that the conditions are quite acceptable, so why not visit your own bank again and take out a favorable loan?
In this case, it is advisable to take a very close look at the tied debit interest rate and the effective annual interest rate and compare them with the figures from the internet. It quickly becomes apparent that these interest rates do not correspond to the information on the internet, but are, sometimes significantly, higher.
The banks also immediately have a suitable answer ready, which is why it is more expensive in the branch than to want to take out an online loan. An advisor sits in the branch and provides competent advice (and takes the forms from the printer). Now the loan interest rates in the branches are not set in stone and are quite negotiable. It may well be worthwhile raising the issue of interest rates for online loans for a contract in the store. The employee has sales targets, he has to sell.
Where do germans take out loans??
It is interesting to see how borrowing has changed. The following table with figures from 2013 provides information on this and shows that online credit has long since found its place:
|Type of loan||in percent|
|in the branch||37|
|by other means||28|
|online presence of a bank||14|
|on site with an intermediary||10|
|online credit comparison portal||7|
In the period between 2014 and 2017, the proportion of loans taken out online rose from 21 percent to 27 percent. This figure summarizes the conclusion via a loan comparison portal with an application via the homepage of a bank. In total, the percentage of those applying for online loans increased from also 21 percent in 2013 to the 27 percent in 2017.
Mini loans – the ideal online loans
The growth of online loans continues steadily, as a new loan product has also established itself on the market in 2018 and 2019. We are talking about so-called mini-loans, which are granted exclusively online. Mini-loans are classic online loans. They range between 50 euros and 2.000 euros. The repayment is made in one sum or in two installments, depending on the loan amount. In the anglo-saxon world, these loans are known as "payday loans" because they are repaid when the salary is received.
Anyone who wants to take out such an online loan can enjoy an extremely streamlined loan application process. Some providers do not even require a minimum income and do not make a schufa inquiry. If a provider asks for an income, it usually only takes 500 euros a month to take out these online loans.
Installment loans with unbroken demand
The low level of interest rates is probably one of the reasons why the number of all loans granted has reached a fairly high level since 2006:
|Number of installment loan contracts concluded in germany from 2006 to 2018 (in 1.000)|
What to look for when taking out an online loan?
Basically, there is very little to consider when taking out an online loan. Of course, the interest rate plays a decisive role. However, it can also be useful to select in advance which providers accept free unscheduled repayments or early repayments. On the other hand, one or the other borrower may need an installment break. In this case, too, there are banks that already offer such a procedure in a standardized way and without additional costs. The two-thirds interest rate is an important indicator in terms of possible interest rates. It indicates the maximum interest rate paid by at least two-thirds of borrowers. The lower the two-thirds interest rate on an online loan, the greater the likelihood that you yourself will also benefit from the lower interest rate.
Same customer status despite online credit
Even if a loan is taken out through the internet at one of the branch banks, the customer has the same status at the bank as a customer who was in the branch. A credit application made on the internet, therefore, leads to no discernible disadvantages.
Almost every type of loan can also be applied for online. The options are many and for almost every loan option there is a loan calculator and a comparison of many different providers. So do not be afraid to use the internet and its many options.
Interesting is a small overview, for which credit types the users in google search most frequently.