Need money for a new project or catching up on your financial life? Online personal loan is a simple, efficient and fast way to get the desired amount without having to queue up at financial institutions or waste time commuting.
Although the number of people who have opted for this type of credit has increased, there are still many doubts about it. Some even get a little suspicious about the effectiveness of the online procedure.
If you are full of questions, look at some myths and truths about online personal loan and understand how this type of credit works.
You have to pay an upfront fee to get your personal loan online.
Myth ! The idea is to make your life easier and deliver the value you need, with less paperwork and more agility. There is no fee to pay and if any institution asks you to do so, be wary of it and run away from it.
Asking for advance payment of something is prohibited by the Kendra Bank. Watch out and don’t fall for scams! The only payments you will have to make are the loan installments.
To get the personal loan online there is a credit analysis.
True ! Just like any financial institution, online traders also analyze your economic life, to make sure that you can afford to repay the amount you borrow.
Speca and FVB are consulted and their profile assessed. Only after this will the loan be approved or not.
Online personal loan is more expensive than in the bank
Myth ! As in physical institutions, there is variation in interest rates. However, usually in the online procedure it is possible to achieve even lower rates. This is justified by the fact that institutions do not need to have a physical space to receive customers, which brings savings to the company. The value of the economy ends up being, even indirectly, passed on to the customer and decreases lending rates.
There is online loan for those who are negative
True ! There are some loans that can be made by those with the dirty name. But overall, they have higher rates.
This is because, according to your payment history, the chance of the company not receiving timely payments is greater than when the person does not have a dirty name. With greater risk, rates also rise. Therefore it is best to try to clear the name and then apply for a loan.
Online loan takes longer than in agencies
Myth ! The whole virtual procedure aims to ease the credit application process and make the procedures faster. With this, not only do you have to waste time going to financial institutions, all data analysis is faster, so once you are approved, you will have the money in your account in less time than going to the bank.