Loans ae one of the most demanded financial products for all types of clients. Both individuals and companies. And two are the most used methods to achieve them: online loans and bank loans.
What are the differences between these two products? What are its advantages and disadvantages?
Online loans and bank loans
Undoubtedly, there are more and more differences between online loans and bank loans. And although until a few years ago banks seemed the only safe and stable alternative, nowadays online loans are gaining ground on these other financial products. Let’s see the reasons.
In the case of online loans, there is a wide variety of products depending on the amount, the speed of response and the repayment period sought. Something that is not so easy to achieve with bank loans. Among the private equity loan companies responsible for granting loans online, there are all kinds of options. From micro-credits, with which you obtain a maximum of $ 1,000 in just 15 minutes and repay in a month, through fast loans or loans with a mortgage guarantee.
Without a doubt one of the big differences between companies that operate online and banks of a lifetime are the papers that are requested to confirm a loan.
- In the case of online credits, they are usually simple documents to obtain and easy to present. As for example the copy of the current account, the ID of the holder and an email account.
- Bank loans normally ask for a photocopy of the payroll, the employment contract (to check the age and if it is an indefinite contract) and the personal income tax of the last years.
The greater number of documents requested by the bank is associated with higher credit requirements. If the bank considers that the client does not have a stable financial situation, it will not grant the loan. In this way, clients with Asnef or without stable payroll will not get a bank loan.
Speed of the procedures
Undoubtedly, online credits manage to beat the response speed of bank credits.
- The first ones take between 15 minutes and 72 hours to be granted, depending on the amount requested. For example, micro credits that do not exceed $ 1,200 are deposited into the customer’s current account in less than 15 minutes. A credit with a mortgage guarantee, whose capital limit is established in proportion to the value of the property, will take around 72 hours.
- In the case of banks, the procedures can take days or even weeks. The response speed is greatly reduced due, among other reasons, to having to go to the bank branch to sign or deliver documentation. Online credits, when acting through the internet, save a lot of time.