Applying for a loan can be necessary for a variety of reasons. But the offer is varied. Especially in the field of online loans, however, you can take advantage of this and filter out the appropriate provider with the help of suitable comparison portals and search criteria.
All facts about the guide “Online loan application” at a glance:
- Loan agreements between private individuals are freely designable as long as they do not violate the principles of the Civil Code.
- The preparation for a loan application should include the loan amount, the provider choice and the control of the contractual clauses.
- The credit application only has to be opened, filled in and sent out.
- Urgently check the information before signing!
1. Which legal bases should be considered?
The loan agreement falls under German law under the agreements of the Schuldrechst. Thus, there are a few minimum requirements that must meet a credit agreement, but everything else is freely selectable by the involved. Only the written fixing of the details in a contract is a prerequisite for legal validity.
Thus, a declaration of consent of both sides is required, which is already done with the performance of a signature. Furthermore, the guidelines for the prevention of corruption and money laundering must be considered. The money laundering law is usually part of the terms and conditions of financial service providers. In Germany there are different age limits with which citizens are granted different rights and obligations. So borrowers must be older than 18 years. Thus, the framework conditions for a loan agreement are already set.
2. Prepare a loan application with this checklist!
What is the total amount of my credit?
This question seems simple at first, but it can be tricky under certain circumstances. While some items, such as cars or motorcycles, have a fixed amount that may change as sales negotiations progress, things look very different in real estate. Here, not only the purchase price, but also all other costs incurred must be taken into account.
- the land register entry,
- the brokerage fees,
- the cost of an appraiser and possibly an architect,
- Reserves for renovation or even refurbishment and
- a buffer for the unforeseen
While some of the above points are fixed – ie calculable – costs, others can only be estimated vaguely. This often makes it so difficult to stake out the credit line. Conversations with experienced persons, such as the architects or building experts, often help here.
Where are the loan conditions most favorable?
Cost factors when buying a house
Once you have decided on a loan amount, it is important to find the cheapest provider. Here you have to pay attention to hidden costs. Basically, you should be aware that the personal life situation can change at any time, but not necessarily. It must be made a variety of comparisons. Thus, the borrower uses very little if he has to pay a higher effective interest rate, just so that he has no processing fees in case of a possible loan conversion.
On the other hand, if two credit providers offer the same effective yields, such conditions should, of course, be included in the considerations. Especially with online loans you have the opportunity with relatively little effort to compare many online providers. Not least thanks to the comparison portals offered. Of course, in addition to the effective interest and the term must be considered. As a rule, the lowest interest rates have the shortest maturities. You do not need to be a mathematics genius to be able to conclude that this results in correspondingly high installment payments.
The relationship between interest rates, maturities and repayments
Higher monthly rates require less of the income for private consumption. People who are in debt are likely to prefer a higher installment, including no daily luxuries, to relax and enjoy the rest of their lives. Other people prefer a lower installment. They take the view that they can consume despite the repayment of loans in the present. Especially since nobody can predict with any certainty, whether ever the end of the loan payments will be experienced. Thus, each borrower must identify with himself and possibly the partner which maximum installment is appropriate to the lifestyle. Then you have enough rational numbers in your hand with the help of which you can compare the various providers.
The loan can be requested
Once the decision has been made, the path described in more detail below can be gone.
Which clauses does the credit agreement contain? Are all details correct?
Once the loan has been approved and the contract is kept in check, it must first be checked for correctness. This concerns, on the one hand, any clauses that may have been read out before the application. A valid document should no longer be unclear. If this is the case, either help should be obtained from third parties or the provider should be contacted.
Of course, all the information provided must be checked again for accuracy. Especially the bank and contact details require special attention. Spelling errors can lead to delays in money transfer. This is not only annoying, but can sometimes lead to late payments.
Compile necessary application documents
If all the data is correct, the borrower must still be identified as a person and the credit worthiness reviewed again. For this purpose, various documents are requested from the providers. These are mentioned on the homepage of the offerers either during the request for quotation or under FAQs. At the latest with the receipt of the credit agreement, the borrower receives a request to send the listed documents.
Classically, these are firstly a salary statement in the form of the lowest payroll over the past three months. The salary payments must be filled with current account statements. In addition, the inclusion of a self- information is often required by the Private credit. You will find out how this works in the guidebook “Private credit Selbstauskunft”.
The own person must be identified
Particularly with the financing over on-line offerers one could reach at this point at borders. Meanwhile, there are many ways to overcome this hurdle. Very popular is the Postident procedure. Here, the documents can be submitted to the post office. An employee checks the personal details and confirms them to the credit provider. This avoids the hassle of sending sensitive data back and forth.
Otherwise, the identification is done by sending a proof of address and a copy of the identity card. How the respective provider handles this exactly, you learn at the latest at this point.
Step by step to the online loan
The beginning of a new phase of life: The loan payment
As pathetic as it sounds, but with the transfer of credit, a new stage of life begins for most borrowers. From now on, they are not only in debt, but often owners of a new house or a car.
3. Apply for an online loan in 3 steps!
If the decision ultimately falls on a specific provider, the application can be made. In principle, this procedure is similar for all providers Differences only in the presentation. Here, the application to the Targobank is presented for improved clarity.
Step 1: Open the application form
For most credit providers, the application form is behind the ” Apply for Credit, ” “Submit Application,” or similar terms. These buttons are mostly on the homepage of the homepage. Since research was carried out on the supplier websites in advance, the access will be easy to find. At the Targobank the button is under the heading “Credit and Financing”. By clicking on “Further Information” you finally reach the possibility to start the application.
Step 2: Fill out the application form
Targobank’s application form covers 4 major areas. First, some information on the financial possibilities to make. These are queried under the item “Your information”. All details will be checked in the course of the loan application processing. Therefore, it should be answered absolutely honestly at this point and in uncertainties would prefer to look again.
The other sections are subdivided into the points “Your Security”, “Your Personal Information ” and “Your Online Offer”. The “Your Security” section offers other products that could fit into a targeted credit agreement. But these can all be rejected. In the section “your personal data”, the information about the person, the place of residence and the employer must be made. Here again: Honest answer!
The question for the employer has the background that the credit provider can get an overview of whether the potential borrower has a “safe” job or whether it is likely that the company goes bankrupt within the next few weeks.
In a final step, then the online offer for a loan is submitted.
Step 3: Send application form
Once all the required fields have been filled in and the questions have been answered to the best of our knowledge and belief, the form can be sent. As mentioned in the checklist, it can be expected that an identification is necessary. This is for their own safety and prevents strangers from requesting loans in their name. Therefore, the necessary documents should be collected at this point. This is followed by the passive part, in which the answer of the credit provider must be waited.
4. The conclusion: An online loan is fast
Request is made quickly, but whether it is approved also depends on how closely the checklist is considered. Credit rejection can take place for many reasons. More detailed information can be found in the guide “Credit rejected”. It should be carefully considered in advance, whether the ideas of the borrower agree with the expectations of the credit provider. Of course, it can come for various reasons to rejections, sometimes they can be avoided by a careful preparatory work. As fast as a loan application is made, it requires a certain amount of effort anyway.