The fact that consumer loans in Spain are the most expensive in Europe , coupled with delays in their study and approval, have favored the proliferation of other alternatives .
The fast online loans are in some way equivalent to the loans offered by the bank, only that the way to get them is more agile and low cost: two aspects that constitute its main advantages.
Why is it a fast loan service?
As its name says, a fast online loan is a financial solution that is processed in a very short time and that is 100% through the Internet. Depending on the platform, the process, going from registration to disbursement of money, may take between 5 minutes and 48 hours. In general, the entire process consists of three steps:
- Registration in the platform : this you must do it only once. It is about filling a simple online form that does not require more information. Then you attach your DNI / NIE to verify that you are the person requesting the loan, and accept the terms and conditions. To carry a secure process, most platforms check your entity sending a code to your mobile as a verification process. Nothing else.
- Online loan application : everything is a matter of filling out a simple application on the web. You indicate the amount of money you need and the payment term. Automatically the platform will indicate the amount to be returned. If you agree, you ask for the loan by pressing the button for it.
- Disbursement of money: the platform takes around 15 minutes to make the transfer to your bank account.
Without a doubt, it is a fast and very agile service , compared to the time it usually takes to request, study and approve a traditional loan.
Why is a loan at low cost?
More and more companies specialize in fast online loans, so they have had to compete in the market with low prices and better conditions for customers. In fact, most companies offer the first loan at a cost equal to 0. This practice allows users who are not familiar with these services and who see it as something totally new and unknown, directly check this type of services for free.
Additionally, online loans save a lot of time and paperwork, which in itself represents a saving of money for your pocket. Regarding your Annual Equivalent Rate (APR), this varies depending on the return period and the amount requested. It may be a little higher than in traditional loans or even more competitive, it does not have high interest rates and most of its amount is due to fees.
Keep in mind that if the APR of a quick loan is a little higher it may be because it is granted at a much shorter time, in a matter of minutes and without requiring more requirements. In this way, the lender assumes greater risk of default than the banks, entities that still recorded at the end of the fourth quarter of 2016 a delinquency rate of 2.95% in loans for vehicles, and 6.57% in financing of other consumer goods.
On the other hand, the low cost of this type of financial solutions is reflected in the absence of insurance, authentication and other additional elements that Spanish banks usually include in the loan amount.
Many traditional banks try to provide additional services to the loan, such as insurance, payroll direct debit, investment in financial products, pension plans … however, entities that lend money fast online do not offer other types of crossed or additional services, they simply lend money , it may happen that the TAE of a traditional loan is initially more advantageous but if we add the additional service set we may finally end up paying more.
It is very important to do the process with a serious and transparent company, that does not hide at any time the real value of the product. Most web platforms have a simulator that indicates these amounts based on the amount of money requested and the payment deadline established. Check our website and the free online loan comparison service and choose the low cost loan that best suits your needs.