Online or stationary cash loan?
Online loans may be cheaper than those granted on-site, which is why in many cases it will be a better choice for the customer. Payments to a bank account and simplified credit formalities speak in its favor.
Credit – statutory concept
Only banking institutions have the right to grant loans, including simple cash loans of any purpose, as part of their banking operations. Pursuant to the Act of 29 August 1997, the Banking Law, the loan agreement obliges two parties to perform specific actions. They are the borrower and the lender. As a loan provider, the bank undertakes under a credit agreement to make available to the borrower, for the time specified in the agreement, an amount of cash for a specific purpose. The borrower, in turn, as the bank’s customer signing the loan agreement, undertakes to use it under the conditions specified in the agreement, to return the amount of the loan used together with interest on the agreed repayment dates and to pay commission payments on the commitment given.
Therefore, a loan agreement is the key to granting a loan, including a cash loan. However, it may not necessarily be physically signed by the parties to the loan. This creates conditions for banks to grant online cash loans.
How is an online cash loan granted?
Today, many banks grant credit obligations online or declare that they can borrow. Sometimes, however, you actually have to sign the contract at a bank branch or sign it after being delivered home by courier. As a result, only the loan application is submitted online, and the formalities are completed in a standard way.
However, there are also such banks which fully grant online loans. Both application and attachment of documents to the loan application and conclusion of the loan agreement is carried out via the Internet, in a remote mode. All because of the Banking Law and the Regulation of the Council of Ministers on how to create, record, transfer and secure documents related to banking activities, prepared on electronic information media equals the validity of a written and online contract.
Is it worth using the online loan offer?
Before you sign or conclude a loan agreement online, it is mandatory that you check at least a few cash loan offers to find the best one. It is possible that the loan will be granted via the Internet, because it may be cheaper than others. It is generally granted by banks where the customer already has a bank account, but this is not a binding rule.
A good price of an online cash loan may be due to the fact that simplified formalities are used and the bank does not bear high costs of customer service. Not every loan will be cheaper than the one offered at a stationary outlet. To see this, you need to compare the APRC – Actual Annual Commitment Rate and total cost of credit.