What is the difference between online and bank loans?
The technology, coupled with the high demand for loans, has brought a new way of contracting credit: online loans. As a result, competition has increased and now it is possible to find more competitive interest and less bureaucracy during the process.
Origin of the two loans
The difficulty of the banks to reach all regions of the country and the need for an infrastructure for the construction of the banking branches gave way to a new business: the banking correspondents.
Representing medium and large financial institutions, bank correspondents act as intermediaries in bank and financial credit proposals.
When a loan is made at the bank, the money comes from the institution itself. In most online loans, the money comes from the bank that this company represents. A correspondent can represent more than one institution and receives commissions on the value of each operation performed.
Online loans at correspondent banks try to be faster and easier to obtain than in banks.
How the loan works in the bank
Having defined the purpose of the loan, the conditions and financial situation to honor the agreement, one should go to the bank provided with the documents required for the entry of the loan application. CPFs, proof of income, proof of residence, and others are usually requested.
The bank will analyze and determine whether or not to approve the credit release. The conditions of the client are analyzed to pay the installments and if it is negative or not, among other questions.
If the credit is approved, the customer must go to the bank to sign the contract. Once this is done, the credit will be in the account within a few days, depending on the institution.
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How Online Lending Works
The great advantage of the online loan is that everything is done on the internet, wherever you are and without excessive bureaucracy, getting all the information of the interest rates charged and the installments.
Any Brazilian citizen with more than 18 years, individual checking account and proof of residence can make the entire process of the loan online, from request, sending documents and approval.
Once the institution is established and its legitimacy and security verified, all data and documents are sent online for consumer credit analysis.
If approved, the money is quickly available in the applicant’s account. In some institutions this occurs within 24 hours.
The interest paid and the chances of being approved in each one
The online loan is an option that has come to facilitate the way to acquire credit. With everything done by the internet quickly, easily and without bureaucracy. Simply search quickly to see the various loan options online.
Online personal credit draws the attention of people who need money urgently and who are negative as the chances of being approved on an online personal credit are greater. But this comes at a price: some sites charge very high interest rates.
It is therefore important to research the rates applied by each institution and their legitimacy, since criminals take advantage of the situation.
At banks, credit analysis is usually stricter, but good customers can get lower rates. If the person applies for credit at the bank where he already has an account, the institution already knows the client’s profile and can offer better conditions.
But the financial ones, because they do not know the customer, usually charge interest a little higher than the banks. Credit analysis depends on institution to institution, and negative people may have more difficulties to achieve.