The online personal loan
In United States, the personal loan is a form of consumer credit that is not intended to finance a defined project, unlike the assigned loan which is intended to finance the purchase of a specific good or service. . The personal loan can be used in particular to help the borrower to meet certain expenses such as, for example, renovation costs, travel, medical expenses, the financing of a wedding or even expenses for consumer goods. the nature does not have to be specified. The funds are paid into the account of the borrower who then has the option of disposing of the amount as he wishes.
What is an online personal loan?
Like any consumer credit, it is a loan granted by a bank or an institution specializing in credits and the repayment is made in monthly installments over a period ranging from a few months to several years. The minimum repayment period is 3 months and in practice there is no maximum period. However, this kind of loan usually does not exceed 7 years.
It is a loan that can be between € 200 and € 75,000, however, the amount may vary from bank to bank. The credit rate is also variable and depends on the lender as well as the repayment term. The conditions for obtaining it may also vary from one organization to another, the borrower may thus be refused the loan if his repayment capacities seem to present a risk following the assessment of his situation by the lender.
As with other consumer loans, the borrower has a withdrawal period of 14 calendar days after signing the contract. At any time, the personal loan can be repaid in advance, which could happen in the event that the borrower benefits from a sudden inflow of money (an inheritance for example). However, in this situation, the organization from which the borrower has applied for the loan is entitled to charge fees which will be mentioned in the contract.
There is also the possibility of deferring maturities (generally twice a year) if the borrower encounters temporary financial difficulties.
The information that the institution is required to communicate to the borrower and which cannot be changed once the contract is signed are as follows:
- The total amount borrowed - The duration of the loan - The amount repaid each month - The total cost of the loan - The annual percentage rate of charge (APR) - The terms of repayment
From now on, your loan application can be made online. As a result, you are no longer required to go to the bank or credit institution chosen to complete your personal loan application or even to make an appointment with a client advisor who would take care of entering your data. personal data in the computer system. As long as you have an Internet connection, you can apply for a loan without leaving your home. All you have to do is fill out a form to send your information directly to the bank or financial institution of your choice.
How can I get a personal loan online?
If you have already chosen the bank or credit institution where you want to borrow, you can go directly to their site to make your request. However, it is advisable to first use an online comparator which will help you choose the personal loan that is most advantageous for you. You will be able to do credit simulations by varying the amount and / or the repayment period in order to know the monthly payments generated and check their compatibility with your repayment capacities, but also, to discover offers that may interest you. Nothing prevents you subsequently from sending credit requests to several organizations at the same time, in order to maximize your chances of obtaining the loan you want.
In all cases, you will have to fill out a form with the necessary information (which is the same as that a traditional bank would have requested) including your personal and professional situation as well as your income. Once your request has been sent, you will receive a response in principle which is immediate in most cases. If this answer is favorable, this means that according to the information entered on the site, you can subscribe to the personal loan requested from the organization concerned. The loan offer will then be sent to you by mail. At that point, all you have to do is date and sign the document (to avoid any errors, the fields are pre-filled) and send it back by post, along with the supporting documents requested. These will allow you to conduct an in-depth study of your file, after which you will be sent a final answer.
What are the advantages and disadvantages of the personal loan?
- The personal loan allows you to freely finance your projects, without having to justify the expenses that will follow. It allows you to dispose of the money as you see fit, which is very practical in the event that it will not be used to finance a specific purchase. It can help with important projects without you needing to dip into your savings.
- It is a customizable credit that allows you to choose the monthly payments as well as the repayment period according to your situation. You also have the option of early repayment, in part or in full.
- For people in need of immediate credit without proof , the personal loan is the ideal option. With the online personal loan, you can, in fact, obtain the desired amount very quickly.
- The duration of the credit is fixed which makes the risk of over-indebtedness minimal compared to that of revolving credit which is contracted over an unlimited period of time.
- If you use the personal loan to finance the purchase of a capital good and, for example, a complication arises with the delivery of the latter, you will still have to repay the credit. It is the same if the sale poses any problem, that it is canceled or that the object presents a defect.
- In most cases, the interest rate is higher than that of an affected loan since the bank does not have a real collateral related to the purchase of a specific item.
- The rules for acceptance are generally stricter since proof of use is not required. In any case, the borrower's debt cannot exceed 33% of his income.
What are the advantages and disadvantages of online loan?
- It is a practical and simple procedure to perform. You only need a few minutes to complete your file and send your loan request. In addition, taking the time to compare the offers of different establishments yourself and having to make appointments with advisers can become very long and waste a lot of time. With online credit, you can do all the paperwork without having to leave your home.
- You quickly get a response to your request. Most of the time, the answer in principle is immediate on the basis of the elements declared.
- The loan application can be made whenever you want, at any time of the day. You can therefore do your research outside of bank opening hours.
- You can follow the progress of your credit online once it has been granted to you and you can request to make certain changes if necessary.
- Online offers are often more advantageous than those of traditional banks, you can come across many promotions.
- It is a secure system, your data remains confidential.
- Some people may find the inability to physically meet with a counselor disadvantageous. If you feel the need to ask questions or make specific requests, it can sometimes be difficult to navigate. At that time, do not hesitate to call customer service so that we can help you with your procedures. In most cases, it is also possible to chat with an advisor through a chat window on the site concerned.
- Online banking doesn't have to be cheaper, and customer service isn't always good. It is advisable to find out about the establishment in question beforehand.
What are the necessary supporting documents?
The documents requested to finalize the study of the borrower's file are to be returned by mail, along with the dated and signed contract that you will have received. In some cases you can also send them by email, it all depends on the organization chosen. The essential documents for the personal loan are:
-A valid identity document (national identity card, passport, residence or resident card, etc.)
-A proof of address (electricity bill, property tax, rent receipt ...)
- Proof of income (last tax notice, last pay slips, certificate of family benefits ...)
-A bank or postal identity statement (RIB or RIP)
However, this list is not exhaustive and the institution from which you have applied for a personal loan may deem it necessary to require additional documents, especially if your situation has certain particularities.
If you cannot provide these proofs, such as proof of income, it is very likely that a microcredit will be offered to you instead of the personal loan.