The differences between online and traditional personal loans (those granted by banks and credit institutions) are numerous and of great importance. In this article we present a comparison of personal loans in relation to such fundamental aspects as quantity and term, interests, documentation, processing and customer profile.

How to apply

The first big difference between these two types of personal loans is how to apply and process yourself. What defines online loans is, precisely, that they can be processed online , while traditional personal loans are requested in person in most cases, even though the bank has an Online Banking service .
In this sense, the balance is already leaning towards online loans for its great advantages: it can be done from home, from work, from the street with a smartphone … In addition, there is no time limit in these, while in classic credits you have to respect the opening hours of the bank office. For this reason, online credits are also called Credits 24 hours , since they are always open.

Amount and term of return

Another big difference between both forms of personal financing is the amount of money and the term. While in traditional credits the figures are very high, even higher than € 10,000, online credits handle more accessible figures . As regards the repayment term, banks usually organize a repayment schedule with numerous monthly payments, while in online loans that refund is made at one time and without delaying the process too much .
The conditions that Credy.es gives to choose in their quick mini-credits are between € 50 and € 750 for the borrowed amount and between 1 and 30 days as the return period. This makes online credits add the prefix ‘mini’ to define them.

Comparison of personal loans in terms of interest

The great consequence of the long repayment schedules that must be followed to return a traditional loan is that many interests are paid in this way: the first installments are almost exclusively interest on the loan itself, which continues to be paid in the remaining installments. To this we must add other associated expenses such as the study commission, opening commission, payment protection insurance, expenses for the formalization of guarantees, etc.
On the other hand, with personal online mini-loans such as those of Credy, expenses are reduced to management , with no opening fees or other associated disbursements. This fact not only saves the client money , but also frees him from bondage over time, a bond that the borrower of a traditional credit does suffer while his payment schedule lasts.

Necessary documentation

Another no less important difference is that of the necessary documentation to request a loan. In the traditional ones, the greater the quantity requested, the greater the number of documents required. Some of them are:

• Employment contract with fixed payroll.
• Guarantees from third parties or bank guarantees that respond to unpaid assumptions.
• Relationship of the borrower’s personal assets
• Rental contract for tenants or housing deed for owners.
• Receipts for household consumption, such as electricity and water.
• Bank statements to check the average balance of the account during the last months.

None of this is necessary in the online personal loans of Credy.es. Bureaucratic obstacles do not exist and the only personal data to be provided are the application form, as basic as name, home address, employment status or bank account number necessary to properly receive the minipréstamo .

Who can request it

Finally, another fundamental difference is who can request a type or another of personal loan. In traditional loans, the demands are very high, mainly with regard to a fixed payroll with high income and an unblemished credit history. That is, the people who are part of ASNEF have the closed door to this form of financing.
In the case of Credy.es, practically anyone of legal age can request one of our mini-credits. In fact, the acceptance rate of applications that we handle is around 90% . With us you do not need to have a fixed job but rather a demonstrable periodic income . In addition, the fact of being registered in a list of defaulters such as ASNEF, FIJ or RAI is not an impediment to access our online credits.
Therefore, as a summary, ease of application , the most accessible conditions , the lowest interests , the absence of bureaucratic obstacles and universalization are the main advantages of online personal loans compared to the personal loans of banks and financial institutions. traditional