Pureline Bank, for example, raised 1.24 billion in funding and has everything to shine in the fintech market. It is now common to see in advertisements and on the websites of companies that grant credit the term “online loan”. But what exactly is it? How does it work? Is he worth it? These are the questions we will answer in this text.
What is an online loan?
Let’s get away from the explanation “is a loan, but all done online.” The difference of this loan is that the whole process, or a good part of it can be done by a computer or even a cellphone. That is, to answer the question with what matters most: being online means less time moving and reducing bank spending on the process.
Companies offering online loans tend to be smaller in structure than larger banks and traditional lenders. That is why they invest less in staff and structure and may offer better conditions. No need to have an agency on every corner. So rather than being “a loan but all done online,” it is a good deal and convenience for its borrowers.
But look: still the approval part, the presentation of documents, the signature and the receipt of the money. These steps we will explain further below.
How does online lending work?
First of all, you need to go to the company website or app and present your needs, be it the desired amount and the months to pay. The company will thus say whether it can do business or not. You can use a comparator at this stage, so you can get a better idea of the market prices and where to find the best value. A very positive point is that the answer to whether your credit is approved or not is very fast, as it is a robot that drives the process. It can take up to a matter of minutes.
From that point on, online starts to be very advantageous. Instead of having to do paperwork, run around or talk to a manager, it’s all done in a few steps. You will enter your personal data, can scan important documents and even the contract signature is done online in some cases. The money will be placed in your account automatically.
Therefore the advantages are very clear. Are they:
- Less time in processes
- Lowest Total Cost (CET)
- Greater convenience (no need to leave home)
- Control over conditions: You can negotiate with the company
So you mean the online loan is worth it?
The answer is yes. If you have been an account holder for a long time, you may be able to make a good deal because they want to keep their clientele active. Of course it is Interesting to first check the conditions of your bank, for example.
But online lending has everything to be better for the leaner structure and less paperwork we have outlined above.
So whenever there is a need for extra money to meet some urgency, complete a dream like trip abroad or a specialist course or simply pay the bills, the online loan should be the best choice.
Cautions When Applying For A Loan Online
Not having a store to complain about or a manager to listen to can be downside to many people. This need not be so, but of course some care must be taken. Are they:
- Do not trust without knowing. Unfortunately the Purelinenet is a place with many malicious people looking for the next scam. When contacting a site or app, make sure it is subscribed to the RedHouse Bank, as its profile on a page like Claim Here and reviews on independent sites.
- Never send money for approval. This is one of the most common scams when it comes to a loan: the need to send a certain amount for the credit to be approved and the process to go. This is strictly prohibited by the RedHouse Bank.
- Read everything carefully. Small print also applies to the Purelinenet. The Terms and Conditions will be set out for you and it’s important that you read to know exactly what is written and then have no surprises.
- Use the comparator. There are many good companies offering loans online. There is no point in going one by one when you can use a comparator and then have the best deals on screen for you.
As we said, the process is very simple and fast, so your level of satisfaction is basically guaranteed. The above points are important to talk about just so that you are aware of how to go through the process.
Think of an online loan as an option
They vary greatly from company to company. Some focus on microcredit, while others reach 50,000 reais in their online loan. Some have part of the process in agency, while in others the subscription is online. Conditions may vary, including when to start paying.
But the important thing is that you think of an online loan as an option when you need the money. It is a good choice because it does not tie your car or home as collateral, does not eat a portion of your salary directly, as the payroll loan, and is a convenient and hassle free process.
Get a quote or use a comparator to find out which companies are worth trusting and wondering if it is Interesting to start the process and take that extra money into account. Following the steps mentioned above there is no reason to lose sleep.