Online loan versus bank loan
Previously, it was to borrow a market that was in the hands of a few institutes. But this is a completely different situation that we are facing today.
When we go to the bank and ask if we can borrow, it is a lengthy process. A meeting must first be arranged. This must happen within the bank’s normal business hours, which means, for the vast majority of us, that you must take time off from work. The only day when there is longer opening hours is Thursday. This is something that can be troublesome. It can often be several weeks in the future if you need to have a meeting with your bank and it is extremely rare to get a quick answer on whether you can borrow. It is also often you cannot be approved to borrow the amount you would like. It is a lengthy process and often a process that may seem a bit humbling to many. There are several of my friends who have described it comparatively to begging. This may not be the full truth, but it is probably not so nice to be measured and weighed by economists, after which one may be found too easy.
Most banks will also demand that you have something that you can provide as collateral for the loan. It can be a car, a home value, a boat, or something else. So in the bank it can be difficult, almost to say impossible, to borrow if you either have no loan value or something that would certainly guarantee that the bank will get their money back – you should not pay the money back in anticipation.
My experiences in taking out a loan
I have experienced that it can take a very long time to take out a quick loan. Just the application part could take up to several meetings, and I had to have all your papers, because otherwise the bank wouldn’t be able to say anything. It is as if they are wearing both a strap and a harness. But it is now difficult to get the money out of your bank, and the process is very complicated.
Fortunately, there are others who have done something about this loan process today, and who know that today is another world that is running faster and faster every single day. If you can keep up, then there is no time to wait for days and maybe weeks before you get capital, if you get the loan at all. There are many internet solutions that will help you borrow the money. You can now borrow money with your NemID and get the money out quickly. It has seemed impeccable to me every time. Of course, these online banks have some requirements for you to be able to borrow. But the requirements are not at all like the ones we experience in our regular bank. Of course, they require that you have a postal address in Denmark and a valid residence permit at least. If you are a Danish citizen, you must also have NemID, as this is the one you use to sign with. Then you can have the money transferred to your account.
If you don’t have NemID, don’t worry. You can easily borrow online anyway. You will just be sent the regular letter agreement, which you will then sign and return. Yes, it takes a little longer to get the money, but it is still faster than in the banks.
For those who are into Experian and everyone else
There are some companies that are also willing to lend you money even if you are in Experian – formerly known as RKI. There are not necessarily the same terms that you would get in your bank, but it is now somewhat easier to get the money out of the online banks that are on the market.
The loan process itself is also quite different. You fill out a questionnaire online and within a short time you will be notified if you have been approved to receive the loan. It’s not days or weeks along the way. You can simply do it all online, and you are also not forced through an hour-long meeting where every little prickly hook of your finances needs to be turned and where there are high demands on what you can spend your money on. After all, they are earmarked and you do not spend the money from a car loan to fix your heating system at home.
The differences that exist, and the ease with which most people today can take out a loan, is the best reason why many seek the fast loans. No one can or will spend days and weeks waiting for money that might not come anyway. After all, it is life here and now, and waiting for days or weeks for money that you currently need to spend is a major obstacle.
There is also a difference in the amounts to be repaid. Often you will see that there is a slightly higher interest rate on the loans that you can take out online. They also often have a somewhat shorter maturity. The biggest difference, however, lies in the loan method, and you do not have to meet the one who lends you the money personally. It’s up to you how you want to borrow that money. The bank also puts restrictions on what you can spend your money on. The money that you borrow from the bank is for what you agree with the bank. They are not for anything else, and it is something that is by no means open to discussion.
When you borrow anywhere other than the bank, your money is yours. No one is standing there looking you over your shoulder and telling you what to spend your money on. It’s up to you what you want to spend them on. The only thing they are interested in is that you pay the money back and that you do it on time. When you are in a situation and need to spend money on something in your everyday life, it is extremely rare that you can just reach a meeting at the bank. Then it is easier now that you can apply for the loan quickly online, and you also very quickly have the money in your account and can use it soon after for what you just need and need.
Differences between bank and internet loans
The many differences when looking at how to borrow from a bank and from other loan providers, respectively, show that there is a huge difference. But both lend you money for the purpose of making money. Thus, similarities are also limited. Borrowing money online is as easy as it can be difficult and cumbersome in the bank. Banks are only interested in lending you money if they are one hundred percent sure to get the money back. They are much more rigorous in their interpretation of financial leeway and expect full insight into your financial situation before they even look at your loan application.
It’s an opportunity for everyone to apply for a bank loan, but you need to be aware that you need to have more than just control your finances before you can even consider a loan. Once you have been through the entire mill, you will then be able to receive the loan. However, only for what you are expected to spend the loan on. There are many restrictions on what you may spend your money on. And if you use them on anything other than what you told the bank, then burns down.
Loan Opportunities Online
When you take out loans online, there are many options. You can easily look around and find the ones that will give you the best loan terms. Common to all of them, however, is that unlike the banks, they do not care what you spend your money on. No one is setting conditions or trying to prevent you from using them for whatever you want. One of the very big differences is that you will always have a personal service at the bank. You will always face a person who has to look after your finances. Surely this is not what happens when you search online. There are even some companies that do not have people to handle your application, and human contact with the application will only occur if the information you have submitted is deficient. However, it will often only extend the application by a little half an hour if an employee needs to check what it is that is missing from the information you have provided. Then you will quickly find out if you are approved for the loan and whether the money will be available in your account within a few hours.
First of all, it is this speed that you can get the loan with, which is the big difference. But that you can also get credit approved for the loan, even if you’re not very old or might even be in Experian, is also something that stands out. It is extremely rare that the banks will lend you money if you are in Experian or are not at least 25 years old and have something that you can provide as collateral for the loan. The interest rate you have to pay to borrow money is also somewhat higher with the online loan providers. But again, they also take some bigger chances, and they do not see your intentions but of course would like to get their money back. There is also often a big difference in the period during which the loan runs. The smaller consumer loans that you can borrow online will not have a long maturity. This can be a maturity of up to a few weeks, which is why you often want to have a maturity of a few years for even very small loans.
The bank will often be the cheapest place to borrow money
But in recent years, their conservative lending policies have prompted many to seek out online loan providers. Their quick process of getting the money paid into your account and their friendly policy of who they borrow money has made them very popular. Most of us don’t really care that we may have to pay a little extra in interest. It is not worth the hassle of having to go through the bank’s 3rd degree interview when we have to borrow money. There are also many who, when going to the bank, feel very insecure about the situation. They feel insecure and would certainly like to avoid the bank. Here, they will surely find it safer to search online and avoid their bank advisor.
Another difference is that with online loans you have a very easy way of getting different offers on which loans you can take out. It’s easy to get more deals, and then it’s up to you to find the ones that will give you the best terms for a loan. If you need to arrange meetings with just 3 banks, this is a process that can easily take months to get done. If you stand thus and need the money for an emergency situation, you can not go through several months of waiting. After all, it is about fixing what is wrong before it goes wrong. And it is also very rare that your bank can help in that situation. This is where you can easily manage all the problems of finding one of the many online loan providers that will surely lend you to what you are just missing.
I don’t know with you, but I’m tired of the tedious process that the banks are offering us. Not to mention the lack of service we all get. Unless you have a million in the bank already, it is almost impossible to borrow anything, and there is no respect whatsoever for the person standing as a customer. It is a mechanical attitude even if you face your bank advisor and are in urgent need of money.