Loans can be applied for at the house bank or online. Where are the costs lower, which bank pays the money out the fastest? A cost and performance comparison of online and offline credit.
Loans to the house bank: advantages and disadvantages
The house bank knows its existing customers and can quickly grant a loan: In the best case, the money can be credited to the checking account on the same day or taken away in cash. But this is not always the case. Lending business has long been largely standardized at branch banks offering personal advice.
On the one hand, this means that the long-standing bank advisor decides neither on the loan approval nor on the conditions. This is done by software that – just like with online loans – checks the economic situation of the applicant and the credit record data. On the other hand, the loan is often not approved by the branch but by a head office, which can delay the payment by several days.
One advantage of the long-standing house bank: Applicants do not have to provide bank statements because the bank can access the account turnover. The contract documents also do not have to be sent by post. One disadvantage: the actual loan interest is only announced in the course of the personal interview. If it is too high, other banks have to be visited, which considerably increases the time required.
Online loans: advantages and disadvantages
Online loans are applied for via the Internet. A major advantage: Even during the application process on the screen – after an automated credit record check – the individual interest rate is announced, so that even loans with interest rate-dependent interest rates can be easily included in the comparison.
In contrast to branch banks, there is no online credit advisor who can help you fill out the application form. Instead, applicants must contact customer service by phone or email. In addition, extensive documentation must be compiled for many online loans.
However, this effort does not apply to online loans with a fully digital application process. A short login to online banking replaces the account statements. The identity can be verified on a PC or smartphone using a video identifier. The sending of the contract is replaced by a digital signature to be made on the screen. Instant loans with this application process can be applied for completely on screen within 15 minutes. Depending on the bank, the recipient account is credited either on the same or the next SEPA day.
Cost comparison online vs. Offline credit
The cost of online loans is usually lower than that of branch loans. Long-standing existing customers cannot hope for a bonus, on the contrary, they are often disadvantaged as “safe business”.
- A consumer loan of over USD 25,000 with a term of 60 months is available from Best Bank from 8.30% APR. “Ab” means that there are surcharges for a less than optimal credit rating. For comparison: the direct bank Cream Bank grants loans at an effective interest rate of 3.49% regardless of creditworthiness.
- The Astro Bank effectively demands 3.99% to 11.99% for installment loans and sets the interest rate depending on creditworthiness and term. Lenders Bank also takes individual creditworthiness into account, but sets the range lower at 1.99% to 4.85%.
Conclusion: online loans are almost always cheaper and usually faster with a digital application.