Where can I apply for an online loan? Which bank can I take a loan from? If a person is in urgent need of loan money, such questions are very important to him. Often, those around him give a very definite answer that goes wrong with subjectivism, such as: “contact a bank like that.” We will try to answer not a specific one, but a systematic one that will help the borrower to consciously and competently approach the solution of a mature issue.
Where can I get a loan? Pros and cons of options
Contrary to popular belief, the answer to the question of “where to get a loan” is not straightforward. If you look closely at the financial and credit market, you can find that bank loans, ie trust (unsecured) or secured term loans (in cash, under a loan interest) can be obtained in various financial institutions.
- You can take the credit in the commercial bank. The indisputable advantages of lending to commercial banks are:
- Large amounts of loans are available that can be used for many purposes: consumer, buying appliances, real estate, even for starting or supporting a business.
- A wide range of offered credit products: consumer, trust without credit, secured by collateral of movable and immovable property, renewable credit lines (credit cards, overdraft), and others.
- The cheapest loans in the financial market can only be found in commercial banks.
- High legal protection of the interests of the borrower, rather low for him financial risks. It is known that when lending to individuals, commercial banks are trying to the maximum to deal with risky and questionable transactions.
- Convenience for financially illiterate clients, because the main concern and responsibility for adherence to the procedure of credit is taken over by a bank employee.
But at the same time, bank loans are characterized by the following significant disadvantages:
- Low accessibility for some categories of population and small business. Reduced availability of financially advantageous bank loans is associated with increased requirements of lenders (banks) to the borrower: for its capacity (age restrictions for individuals, restrictions on the term of state registration, requirements for statements of account for legal entities, etc.) , solvency (required it documentary confirmation by providing income statements, financial statements, etc.), “purity” of title to mortgaged movable and immovable property, and other requirements.
- Low efficiency of earning credit money from the bank, due to the complexity and duration of the credit procedure. Therefore, a large category of borrowers who need money (as usual) very urgently will quickly be credited or slow to a commercial bank is unlikely to succeed.
You can take out a loan from a financial company (FC) specializing in lending to individuals secured by real estate. The advantage of secured with a mortgage loan in FC is that:
- Somewhere lower requirements for “cleanliness” of property rights to mortgaged property are being made. As a result, those objects that commercial banks reject as a collateral loan may well be accepted as in FC.
- forgiveness and procedures for securing a secured loan, the high speed of its passage, and the speed of earning money, including in cash.
The main drawback of a secured loan with the FC is that, as a rule, to maximize the insurance of its risks, the FC offers the borrower to immediately conclude a contract of sale of mortgage property. If the loan is repaid in good faith by the borrower, then the object of the pledge is not worth the worry, it will necessarily be returned (by cancellation of the contract of sale). But if the loan is not repaid in a timely manner, the object of the mortgage is lost immediately by the borrower, without any court proceedings (which occur in cases of foreclosure by the bank).
You can take credit for microfinance organizations (MFIs), practicing trusted, unsecured micro-crediting individuals remotely, via the Internet. The advantages of MFI micro credit are indisputable:
- The availability of MFI loans is very high for the widest possible population. To obtain an MFI loan, it is sufficient for a physical person to meet the minimum requirements: to be of age, to have identification documents (passport, IDN), to have a valid electronic card of any bank, work and mobile phone. At the same time, to get a loan, the MFI does not require a perfect credit record or income statement.
- Great convenience for issuing an MFI loan. You can do it completely online, from any computer device (PC, laptop, tablet, smartphone) that has an Internet connection from anywhere (from home, from work, rest) where there is access to the Internet network. This can be done independently, judiciously, not in a hurry (no one drives, does not interfere with thoughts).
- High speed of receiving a cash loan, when it only takes 15 – 30 minutes from the moment of submitting a loan application to depositing funds to a bank card! If a small amount of money for consumer purposes is needed very urgently, then a better option where you can get a loan than an MFI is not to find one.
But the major disadvantages of an MFI loan are:
- Increased interest rates make MFI micro-loans too expensive in the long run. Therefore, it is optimal to read to MFIs in urgent, “fire” situations, and after that quietly look for cheaper sources of crediting.
- Small amounts of micro-credits (up to 20 thousand dollars), which will be enough for the current consumer goals, as they say, to “reach the salary”.
You can get a loan at pawnshops practicing secured microcredit for individuals secured by liquid movable (usually wearable, where the popular meme is “assigned to pawnshop”), such as jewelry, fur, around the clock, computer, other microelectronics, etc. The advantage of lending at the pawnshop is the high speed of getting a loan: he brought the pawnshop to a valuable thing, immediately received money. Disadvantages of Lending Options:
- not all have liquid valuables that interest the pawnshop as a collateral;
- small amounts of micro loans as mortgage property in workshops is valued at a rather low value.
So which bank can you take out a loan with?
If the options for lending to the FC, MFIs, pawnshops the borrower for a reason or another are not suitable, and he is firmly set up to lend exclusively to a commercial bank, then he can give some system tips.
- You can take out a loan at your nearest bank (bank branch). It’s convenient for most borrowers, so they save their time. In general, banks’ credit offers are more or less equal in terms of terms. Therefore, heading to the nearest bank branch for a loan, the borrower of a large financial loser (compared to the most favorable credit offers on the market) should not expect.
- You can take out a loan at a bank whose offer is most favorable to the borrower. But in doing so, the potential borrower will have to work hard and study the loan offers of at least a few commercial banks available in the city. This may not be very convenient, the office of the chosen commercial bank may be located far enough away. But considerations of financial gain, especially with large amounts of credit, are worth it.
- You can take out a bank loan online through the internet. Many commercial banks are keeping pace with technological advances and are actively introducing online micro-credit services across the Internet, with the help of modern banking programs (applications) and services. Thus, banks enter the field of MFIs, where they actively compete with them.