Personal online loans are some of the most requested financial products in our country. At Astro Finance, as an intermediary between lenders and borrowers, we want our clients to know the characteristics of what we also know as consumer loans.
Do you know what conditions you have to pay attention to especially when you hire a personal loan online? Below we tell you the main bases of these financial products. Take note of them and read the fine print of the contracts before deciding on a specific personal loan.
A definition of personal loans online
In the first place, it is worth limiting what we mean when we talk about personal loans online. Although it seems obvious, it is worth remembering that a loan is a contract. A contract that binds two parties. To the one that receives the money or borrower with the principal, which is the credit institution that advances a sum of money.
Personal online loans, on the other hand, can be divided into some subcategories. These are business denominations that are put in function of the finalist interest for which the client seeks them. For example, for vehicles, weddings or vacations. The differences between the conditions of these financial products are not substantial.
And it is that every personal loan online is characterized by variables common to the rest of the financial products in its category. In the following lines we present them to you and explain why you have to pay great attention in your analysis when betting on any of these products.
The interest rates
It is the price that the credit institution puts for having made the loan of the money. You want to compare the products that exist in the market not only the nominal rate, but also the APR. This indicator implies a more complex calculation that, for example, is taken into account when adding the money that you will pay as interest to the payment of the different commissions contemplated in the loan contract. We refer to commissions such as those related to study, opening, partial amortization or cancellation.
The guarantees are some of the factors that have changed the most in recent times. The economic crisis that began in 2008 ended up leading to a general intervention of the Spanish banking system. Among the conditions established for the rescue of banks, public institutions demanded greater guarantees when granting loans. The main objective of this tightening of requirements was to avoid defaults on the repayment installments of personal loans. Therefore, the risk departments of the banks began to request, as collateral for the return of borrowed money, guarantees, payroll and not appear in delinquent lists such as those recorded by ASNEF and RAI.
This increased rigor in approving loans meant that many entrepreneurs who were long-time customers of traditional banks did not have access to the credit they wanted at the right time. Some of them could not meet the requirements that were asked of them and others could meet all these conditions, but not in the period in which they needed the money urgently.
Consequently, alternative credit entities became useful shelters for these profiles. And they were because they lowered the requirement of the requirements, since they accepted the regular income as the main guarantee of repayment of the loans. Keep in mind that, for example, the self-employed do not usually charge on payroll and that there is regular income that these professionals receive that can exceed in amount to those of a payroll.
In short, the guarantees contemplated by Internet credit institutions for their financial products, without implying a loss of security, are lower than those currently imposed by conventional banks.
On the other hand, there are some requirements (in these cases, purely formal) that you also have to meet to be granted loans. Remember that, although they do not have to do with the accreditation of income, they are equally important. It basically points out the requirements that will allow you to identify yourself before the intermediary entity in the loan.
The DNI is the document that will enable, in addition to this identification, to prove that you are between 18 and 65 years old. Besides, you have to provide the bank account in which you want the loan money to be deposited. And do not forget to state your mobile phone number, since you can receive information on the granting of the money you have requested. Finally, it is worth assessing that performing these operations from the intermediary entity’s web platform represents a substantial advance in terms of comfort.
The monthly fee
Apart from the amount of money you urgently need, you will care about the monthly fee you have to pay. In order to learn how to calculate it, in addition to helping you with the online personal loan simulator of our website, we inform you that you must put in value three basic indicators: the amount, the term in which you have committed to return it and the interest.
Operating on the Internet is one of the great advantages
A personal online loan is a financial product that has been gaining market share for three purposes combined: the financing difficulties of certain entrepreneurs, advertising in the media and advantageous conditions. Among the latter, we highlight that of being able to carry out all the procedures proper to the processes of processing online loans.
Undoubtedly, it is a way of working that favors double savings. A saving in terms of time and money. And it is that the need to complete paperwork with photocopies and wait to be collected before the windows of the bank branches is over. Now it is possible to manage all procedures from home and at the time it suits you to do them.
In short, personal online loans are suitable financing options for punctual payment needs.