In recent years, alternative financing channels to traditional bank loans have increased considerably due to the lack of liquidity granted by financial institutions.
They are called online loans , but how are they different from the rest? Well, these credits require a very simple process that consists in filling in a form where you can include personal data, available resources and the amount requested. Within a period of just 15 minutes, the applicant receives the affirmative or negative response, for something they are called fast loans.
The borrowed amount ranges between 300 and 600 euros and they are practically immediate financing with which to solve specific problems of unpaid invoices. Of course, being the amount of money borrowed lower than that of a classic bank loan, the requirements for granting are much more flexible, even some companies grant them to people who are included in delinquent lists.
Consequently and different from other loans
If we look towards mortgage loans, the differences are more than evident since they respond to a high amount to finance a home and therefore, interest rates are also lower.
If we compare them with personal loans, we can say that these are granted by the banking entities to pay some “durable” good, usually a car or the furniture of a house. For this, the liquidity of the client must be demonstrated and the commissions are usually not very high.
On the other hand, consumer loans are those that are among the modality of fast loan and personal loan since although it is also necessary to present evidence of liquidity they are not intended for the purchase of durable goods, but perishable as urgent expenses or problems of punctual liquidity.
Higher fees and interest rates
They are loans that are between fast loans and personal loans. Like personal loans, it is necessary to prove the liquidity of the client to access one of them but they are not intended for the purchase of durable goods, but for the perishable goods, that is, urgent or punctual expenses. They take therefore less time to be granted, the amount of money borrowed is greater than that of an online loan and the interest rates and commissions are lower.
Each financial product has its purpose, but it is true that fast loans are the ones that offer the most facilities to be granted and are the best option to deal with urgent payments without the need for long bureaucratic procedures.