Take a loan online “,” 100% online loan “,” Fast online loan “- these are the slogans we often encounter when looking for online financing.
However, the question arises – what does it mean for the consumer that he borrows money in the online process? What are the risks associated with this? What knowledge does the consumer need to be in order to find himself in the maze of available offers?
Advantages and disadvantages of borrowing online
They decide to look for financing on the internet, we count above all on the fact that we will quickly be able to obtain money. And here you have to admit that the online processes are structured so that the client receives the money into his account in a quick and effective process.
Filling out a simple application, consenting to data processing and verification in the Credit Information Bureau and Economic Information Bureaus, decision based on verification in internal and external databases and assessment of creditworthiness, signing the contract – often by confirmation with an SMS code, transfer of funds to the Customer’s account from using the quick transfers system.
Doesn’t this process look great?
Of course, but each process of this type has advantages and disadvantages. We already know the advantages. So what are the disadvantages? The first of these is the ability for the customer to easily make a mistake about not reading what he is signing. Selecting a ‘cross’ on the page by clicking the mouse is very easy, the consequences of not reading what is under this ‘cross’ can be very serious.
Going further – the Act on consumer credit imposes on the financing institution the obligation to generate for the customer and provide him on a durable medium information form for credit / loan. Of course, in the on-line process the customer will receive a form – but it will either be sent to an email or appear in a pop-up window with the request for acceptance. Therefore, it’s easy to overlook the form’s entries, not to mention that the form itself may most often not be fully understood by the average consumer.
And the form is a fundamental document, if only because it sums up all fees in the loan. The online process is therefore fast, but because of this speed, we as a customer can lose vigilance and take credit or loan not fully aware of its design and price assumptions.
Off-line, i.e. a visit to the Agent
Or maybe a classic, traditional visit to the agent’s office? The agent will help, explain and find the best offer tailored to the client’s situation . We will receive support, guarantees of the best choice and certainty that everything that we do not know or understand will be explained to us. What will we lose?
Time … Something for something. Off-line process is often one visit to the facility and writing applications for financing, and only then the second visit and analysis of the results and signing the contract – usually the traditional one, paper.