Are you in a situation where you need to borrow money? Maybe you are considering getting a car or taking your family on vacation to the south? If you are looking for loans today, you will quickly find that there are many opportunities – both in the bank and online. Read on and we’ll give you a better overview of bank loans vs. online loans.
In this article, we compare comparing a loan in the bank with a loan online, so you can get a good overview of the different advantages, disadvantages and conditions of each of these two loan types.
Wide range of loans online
Due to the modern technology and developments in society, countless lenders available online today have come to compete with banks’ processing time, rates and loan terms.
But even though the large selection of loans gives you good opportunities to borrow money, it can be a confusing process of finding the right loan for just you and your needs.
For what type of loan will give you exactly the best loan terms – bank loans or loans online?
When a need to borrow money arises, the first opportunity you think of is probably to ask your bank advisor about the possibility of taking out a bank loan.
In many cases, a bank loan can be the safe choice as you are guided throughout the loan process. At the same time, the bank will not give you a loan if the private economy cannot cope with the extra burden this entails.
However, a loan from the bank can give you benefits in other areas. Here we therefore show you some of the advantages and disadvantages of bank loans.
Benefits of bank loans
If you need a larger loan to finance, for example, your home or car, the bank will usually be able to help you with this. Banks do not operate with a “ceiling”, or maximum amount, in the same way as a loan company online.
For that reason, it should not be a problem to fund your big dreams in the bank, as long as your credit rating is in order.
Another benefit is if you contact your bank advisor about a bank loan, you and your loan request will be in safe hands. This involves a process where you will continuously receive personal advice and assistance throughout the loan period.
Therefore, the personal contact with your bank advisor can offer you some security, so you can feel confident that the loan will not only burden your finances. You will only get a loan approved for your personal budget. When the bank goes through a thorough assessment of your personal finances, you will typically also be offered an attractive interest rate and tailor-made loan terms to suit your personal and financial situation.
If you are willing to provide housing as collateral for your bank loan, you can achieve a very low interest rate. This is because the bank has with this a guarantee that the loan will be repaid – in one way or another.
Benefits of bank loans:
- Personal advice throughout the loan process
- Possibility of larger loan amount for financing housing and car
- Attractive interest rates and loan terms tailored to your personal finances
In what cases is it beneficial for you to take out a bank loan?
If you are seeking financing for large investments such as, car, housing or renovation. In this case, a bank loan will be the obvious choice, as you can borrow a larger amount of money that comes with a long maturity and low interest rates.
If you have a tidy economy and own your own home, you will usually be offered very good interest rates and favorable loan terms tailored to your particular situation.
With a bank loan you also get individual advice on the loan in relation to your personal finances, which can help you as you get a safe and secure loan process.
In the case of online loans, however, the entire loan process takes place online when you apply for a loan from a lender. Borrowing online can therefore seem like the easiest and fastest solution if you want to borrow money outside business hours and without the need for personal attendance.
Benefits of online loans
It goes without saying that online loans are a form of loan that is only available online. This special feature makes online loans attractive to people who want to stroll easily and elegantly past the bank’s requirements and time-consuming application process.
You can easily apply for a loan online directly on the lenders’ website. If you have all your basic information readily available, it will take no more than 5 minutes to complete the application and submit it with your Bank ID.
By using your Bank ID there is no danger that your private information may be misused by unauthorized persons. So your security is very good, which is a clear advantage.
You can also apply for loans directly from your smartphone – all you need is:
- A stable internet connection
- Your banking information
You are thus not affected by time or place, as you can apply for a loan and receive the money while you are on the move, should there be an urgent need for money. Unlike bank loans, the online lender does not add up to what the money is going to be used for.
The entire application process is completed in no time. If you apply within the lender’s business hours, you will receive a response within 1 hour and the money will be transferred the next business day.
Benefits of Online Loans:
- The application is 100% online and secure with your Bank ID
- You must not give reasons, submit documentation or provide collateral for the loan
- There are fewer requirements for you and your personal finances
- You will receive a prompt reply and the money in your account within 1 business day