Loans on the Internet, provided by loan companies, appeared in our country several years ago. During that time, they managed to gain many customers who are eager to reach for them. Their popularity may be confirmed by the fact that new loan companies are constantly appearing on the market, starting to fight for clients.
Like any financial product, online loans have their advantages and disadvantages. The former encourage people to take advantage of them, and the latter make people wonder if it is a good offer for them. Below we present the advantages and disadvantages of this product, although it should be remembered that sometimes what is an advantage for others may be a disadvantage and vice versa.
Advantages of the loan via the Internet:
- Quick credit decision – the vast majority of loan companies consider the application as soon as it is received (during office hours). What’s more, some companies have completely automated making credit decisions, so applications are processed regardless of the time of day or night.
- Immediate transfer to the applicant’s account – if the credit decision after submitting the application is positive, the loan company in which we filed an application immediately submits a transfer order to the applicant’s account. So if the borrower has an account in the same bank as the loan company, the money appears on the account within a few minutes. In other cases, the time of crediting the account depends on the Elixir session.
- No hidden fees – every person who submits an application to a loan company knows exactly how much money he will have to pay when the repayment date arrives. Certainly, this amount will not change. The set fees also apply if we extend the loan repayment date. They will not change, either.
- Loan for free – most loan companies “tempt” new customers to take advantage of their offer. “Lure” is a loan for free. It means that if in a company that has such a promotion we submit the application for the first time and we pay all debt within the set deadline, we give exactly the amount we borrowed.
- A loan without a guarantor – loan companies do not require any collateral from their clients. So there is no guarantor here who very often has to sign a loan agreement with banks.
- A loan without leaving your home – to take advantage of the online loan offer, we do not even have to leave the house. For all the procedures needed to obtain money, we make using our computer or mobile phone.
- Minimum formalities – in order to get money, we do not have to send to the loan company statements about our income or confirm otherwise our income. There are virtually no “paper” documents here. Only some companies require the signing of a loan agreement and depend on this for the payment of money.
- Loans without BIK – some loan companies do not check the registers kept by the Credit Information Bureau. This means that people who already have loans or have problems with their timely repayment can apply for a loan.
- A lot of anonymity during the whole transaction – because all activities are carried out via the Internet from anywhere we are, no one will find out that we are borrowing money.
- The possibility of extending the repayment date – loan companies give us the opportunity to extend the repayment period. Unfortunately, this involves paying an additional fee.
- SMS loan – regular customers of a given loan company who repaid debt on time, can apply for the next loan by sending only an SMS to the company.
Loans defects over the Internet :
- High loan costs – the costs we must incur in relation to a loan are relatively high (commission, interest, etc.). The exception here is a loan for free. There are companies in which the loan costs account for almost 100% of the amount borrowed.
- Short repayment period – the majority of companies that borrow money require that all debts be repaid within 30 days (hence their common name of “payday loans”). Only few companies offer money for a longer period.
- The need to know computer skills – to get money, the person who wants to make an application must know how to operate a computer and navigate the Internet.
- The necessity of having a bank account – the vast majority of loan companies, pays money only to a bank account. Therefore, in order to get money, we must have it.
Internet loans have both their supporters and opponents. However, they are certainly an interesting financial product that anyone can use if necessary. However, it should only be done if we are sure that on a given repayment day we will have enough money to repay the whole debt – otherwise interest and fees may be charged.