The conditions for online loans are easy to research, are clearly presented and are often cheaper than what the conversation with the bank advisor would give. However, personal advice is lacking, so that online loans not only have advantages but also disadvantages, which are briefly outlined below.
Select the conditions
First, enter the desired loan amount, the optimal term, which you can of course vary depending on the provider, and the purpose of use in a suitable comparison calculator in order to immediately receive a list of the current conditions. Now it depends on your personal situation which variant is the most suitable for you:
- On the one hand, there are offers depending on the creditworthiness, which are shown as an interest margin. Experience has shown that the creditworthiness of the least interested parties is sufficient to get the lowest interest rate agreed. For safety’s sake you will always find a sample calculation that enables a better comparison. This refers to the average interest rate that around two thirds of all borrowers of the provider receive.
- On the other hand, you will find offers that show a fixed interest rate. You can rely on this interest rate as long as you meet all the acceptance criteria. The quality of your creditworthiness then plays no role in the interest rate.
Obtain a binding offer
As it has so far only been a non-binding offer, reliable documents must be requested in the next step. Important information is already required for this, such as your age, marital status and job. Of course, the bank will check whether you are creditworthy. On the one hand, information is queried directly, on the other hand information is obtained, for example from the VSK.
Your financial situation, i.e. precise data on the employment contract, the start of business, income and expenses, must be presented in such a way that the bank can derive a sustainable repayment of the loan installments from it. It therefore makes sense to prepare detailed lists of monthly income and expenses, obligations and assets from the outset in order to make the bank’s credit risk assessable.
You can enter most of the information directly online, and some documents, such as a copy of the employment contract or pay slips, can be sent by post with the application documents.
Credit documents – identification by post
Most providers of online loans check the plausibility and feasibility in advance based on the directly entered information, which of course must be documented. You will receive documents tailored to your circumstances by post and can provide them with all the necessary evidence, sign them and send them back.
In order to meet the requirements of the Money Laundering Act, identification is carried out by post, but this can be done quickly and easily.
If all requirements are met, nothing stands in the way of a loan payment. For small installment loans or financing for vehicles, this application is very easy on the Internet if you are in permanent employment, live in Austria, are of legal age and have no negative entries in the VSK or a similar credit agency is registered.
Lack of advice on online loans
However, you are also responsible for selecting the appropriate form of financing, the appropriate term and contract control without the advice of a bank employee. On the one hand, it is at your discretion whether you want to deal with the matter yourself or prefer to go to a branch, on the other hand, of course, it depends on the scope and object of the financing. Another aspect is the professional group you belong to.
If you are self-employed or an entrepreneur, the selection of online loans is getting smaller. The house bank, which can assess the business development comprehensively, is usually the better contact to be able to work with additional collateral if necessary.
For civil servants, on the other hand, there are cheap loans because they enjoy special conditions due to their special employment law situation. If a property is to be financed, the valuation is a major challenge that cannot be achieved online.
Online loans are therefore preferred for the private sector and in a manageable amount meaningful and cheap. However, it should not be forgotten that an offer via an online loan can also be a very good basis for negotiation for the house bank.
Some providers with very good ratings
The advantages of online loans lie in the convenient and free processing, the quick processing and of course in the many information that can be found on the Internet about the individual providers. In this way, you can benefit from the experience of other borrowers and orientate yourself better. Direct banks in particular can score with their favorable conditions, as they often do not operate their own branch network and pass on the lean cost structures to the borrowers.
In some cases, residual debt insurance can be offered, such as the Credible Consumer Bank (Credibleconsumer). In this way, you can protect your survivors against the credit burden in the event of your death or yourself against long-term incapacity or unemployment.
Online loans without VSK
Even for difficult cases, for example where negative entries in the VSK are refused to take out a regular loan, there are Internet providers. However, caution is advisable here: on the one hand, there are only a few reputable credit brokers who can offer financing without information or registration with VSK or a similar credit agency; on the other hand, they are naturally relatively expensive.
The lender waives an important risk assessment, so he will limit his offer both in terms of the amount and the term. Interested parties should handle this option very carefully, because the risk of over-indebtedness is immense.
Note: As soon as an advance fee for processing is requested, you can classify this offer as dubious and should refrain from it.
Conclusion – online loans
The quick and direct processing, lean cost structures and favorable conditions are the greatest advantages of online loans that can be researched and concluded online. These variants are particularly suitable for private needs and with regulated financial conditions.
However, if there is an intensive need for advice, such as real estate financing or loans for the self-employed and freelancers, talking to the house bank will often prove to be the better way. In order to have a good orientation and possibly also a basis for negotiation, the offers from the online comparisons are suitable in any case.