In recent years, the possibility of requesting the best personal loan online has grown steadily. As its name suggests, online loans refer to credit made through an internet credit platform. Due to the economic and financial crisis that Spain has experienced in recent years, these platforms have been very successful. The demand for these financial services has grown exponentially thanks to the fact that the requirements to approve loans are less strict than those of traditional banking.
What is an online personal loan?
The online personal loan is part of the consumer credit family and allows you to finance certain events in your life. If you want to apply for a personal loan, financing through the Internet can be an excellent way to obtain the resources you need.
When you need financial peace of mind, online credits can be very useful. Here we have good reasons to consider loans. For example:
Online personal loans can not only replace traditional bank loans, but can also provide financing for small lenders currently operating on the Internet. Compared to traditional banking, these entities offer greater ease and speed in management.
How to apply for a personal loan online?
Online personal loans are operated by financial entities that are controlled by the banking authorities. To apply for your personal loan online, you must meet a series of financial conditions. You must present a solid and complete file that contains:
- Stable income;
- An irreproachable banking history;
- A sufficient remainder to live.
- A debt ratio of less than 45%.
It should be noted that there is also the possibility of requesting fast credits without payroll. These credits are mainly concentrated for unemployed people, pensioners and the self-employed.
Steps to follow to choose the online loan
Next, you must contact the chosen financial institution and send them an online personal loan application. To do this, we recommend that you first use an online simulator to identify the best alternatives. This will allow you to compare any valid offer to choose the one that best suits your needs. This quick fix will give you a pretty rough estimate in just a few minutes.
A large number of credit organizations allow you to obtain a personal loan application directly on the Internet.
You must complete an online form that contains the following information:
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- Your address ;
The financial entity in question will ask you to send it by email the different supporting documents requested in order to send you a response.After the study of your file by the establishment in question, you will receive by email a loan offer that you must accept and return subject to acceptance.
The personal loan includes the following elements that must be mentioned in the contract:
- The principal of the loan;
- Total cost of credit;
- The duration, the total amount owed and the number of monthly payments;
- Guarantees and possible insurance;
- The Annual Equivalent Rate (APR).
You can also take out optional insurance, although in some cases it will be mandatory. Borrowed funds will be paid directly into your bank account.
The repayment term
The repayment term directly influences:
- The total cost of credit;
- The amount reimbursed each month.
If you choose a short repayment period, your credit will be lower because the interest owed is calculated according to the remaining principal to be repaid.
If you choose a longer payment period, your monthly payments will be lower but your credit will cost you more.
You can request the reimbursement of your personal loan online by prepayment, in whole or in part. You cannot be denied the early repayment of your online personal loan and you are exempt from the interest and fees corresponding to the remaining term of the loan.
You should not forget that the total cost of the loan includes:
- Administrative fees if they are included in the APR;
- Interest owed on each monthly payment;
- The amount of insurance possible.
We advise you to choose a repayment term adapted to your situation.
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What organizations offer online personal loans?
Depending on your needs, the current rates and your borrower profile will allow you to select the best lender for your personal loan online. Before making your choice, we remind you that it is important to carry out an online simulation and read the fine print to be able to compare the different offers.