Online loans are more expensive but faster, so more and more people apply for loans online .
It is not new to say that online loans are characterized by being more expensive than loans processed as always, in person by email.
Those who process these credits are also aware of this being something they accept before even asking for a loan .
Why are online loans more expensive?
They are because the financiers who process them assume a greater risk by signing the loans. You have to keep in mind that financial companies give an answer even on the same day. Some can even give answer in less than 30 minutes being something that does not look much like the usual banks work.
Because the answer is so quick, the financial companies can not in any case carry out an elaborate procedure, but on the contrary, if the banks can do it.
The banks at the time of signing a credit can spend several weeks between analyzing the solvency of their customers and decide whether it deserves or worth signing the credit.
The companies that make online loans base their processing is a few variables doing so that the risk for them is much higher.
Why do you think the bank default rate is so low?
It is for the amount of things that they ask the clients to verify their financial situation and be able to do a better study. The banks only detect that whoever is asking for the money is not 100% solvent directly reject the operation. Online financial institutions instead of that, most likely, in the process have not been able to obtain all the information they need from their clients.
What variables do these financiers use to finance the loans?
Above all there are two variables, the income of the one who asks for the money and the presence of the asnef. Yes, there are online loans that can be processed even with asnef but not with a majority in the financial system. Online loans, this being mostly micro loans and small loans, usually deny the customer when he or she is in one of these delinquent listings.
In these situations what customers will do is to go to another type of credit online as they are signed between individuals. They will also be managed through the internet only that the processing time almost followed will be longer. Because although online loans most associate as microcredits and personal loans reduced within these there is everything from mortgage loans to business loans.