As the name suggests, an online loan is a loan negotiated directly on the Internet, taken out without going through a natural person. Find out how this type of credit works and what are its advantages…
How does 100% credit work on the Internet?
A credit allows a natural person (borrower) or a legal person (business) to benefit from a reserve of money, loaned by a bank or a lending institution, to satisfy a need or a desire (consumer credit), the purchase of a car (car loan) or a house (mortgage).
Online credit serves the same purpose – the only difference being in its mode of subscription since it is 100% on the Internet. The signing of the contract is done electronically and the validation of the request, secured by an SMS code to be entered.
Once contracted, it works in the same way as a conventional loan: it implies a monthly repayment from the debtor to the creditor over several months or years, according to the terms defined at the outset.
Like conventional operations, it is accessible to any adult natural person, residing in the country, by going directly to a credit organization site or to a comparator.
What are the advantages of online credit?
Getting a quick deal
The main advantage of an online loan is that it allows you to obtain an agreement in principle within a few minutes. An essential step to validate the feasibility of the project, if and only if, you inform, scrupulously and without overvaluation, the different key elements of the simulation. Note that most of the time, an advisor then calls during the day to further study the funding request.
Immediate access to terms
By choosing to take out a loan online, you immediately know the borrowing terms: the number of monthly payments, the amount of the repayment, the interest rate applied, as well as the duration of the loan.
It is therefore strongly recommended to compare the available offers, to select only the best proposal. Note that the use of these online services is traditionally free: beware of sites that request payment to perform these operations.
Total availability of the service
But the undisputed advantage of online credit is that you do not have to travel, without forgetting access to the service available 24 hours a day and 7 days a week. In a world where immediacy is the watchword, it is undeniably a very attractive asset!
Online credit concerns all types of loans, although the majority of subscriptions still remains, to this day, for consumer loans. Indeed, on the online market, mortgage loans are still in the minority: borrowers prefer the assistance of a natural person, like their banker or a broker to optimize their demand for financing!