Credit by click

Applying for a loan or mortgage for a house is an everyday situation these days. What customers must nevertheless pay attention to? What about digitalization in the financial sector? Can contracts today also be concluded online?

Today's society is fast-moving; this is also how it organizes its everyday life. If someone wants to take out a loan, they have to make an appointment at the bank, take their time and possibly visit the bank again – this is too time-consuming for many people. For people who have little time, there are new options today. Customers can apply for loans and mortgages online, saving them a visit to the bank. For the past three years, some Swiss banks have been offering the possibility of selecting the source of financing via the Internet and concluding the contract in a short period of time. But online it is also important to be mindful and recognize the loopholes in the contracts.

Why apply online?

By applying for mortgages and loans on the Internet, it is possible to negotiate interest rates in advance and make comparisons between the various offers at the same time. The application process is independent of time and place. The interested party can do everything comfortably from home. This saves both the customer and the bank time. Changes such as increases or extensions to the mortgage can also be made online. The time required to do so is low and the interest rates are lower for online contracts. Thus, it is possible to bypass the bank and secure sources of financing in a direct way.

But how does an application work exactly? Certain banks have advanced technology. In them, the customer fills out an online form with the necessary data about the person, the financial situation and the object of purchase. Based on this information, the bank automatically and bindingly determines whether it is possible for the customer to finance the purchase. As soon as the customer receives a confirmation, the contract takes place. This must be printed out, signed and sent to the bank. Applying for a loan over the Internet is done in the same way. The interested person fills in the loan application online and submits all the required documents. In addition, bank employees also use video chats to verify the identity of the applicant. Online forms are easier to complete and processing is faster. In return, the customer foregoes individual advice. These financing options are not only available to private individuals – SMEs also have the option of applying for a loan online or concluding contracts regarding financing.

Customers can apply for loans and mortgages online and thus save themselves a visit to the bank.

From the sofa straight into the car

For leasing contracts, online portals also provide a quick overview and clarity. Interested parties obtain offers online or use leasing calculators to calculate the monthly installments directly and independently on the basis of the necessary data. Technology goes even further. On some leasing portals the customer can choose the car of his choice or get advice. All necessary information is evident. Changes can be made and immediately see how the monthly rate changes as a result. Thus the prospective customer has a clearance and the possibility of deciding alone and in all peace for the suitable offer, completely without time pressure. If the customer is satisfied with the offer, it usually only takes one click to conclude the contract. For those who prefer the classic processing of the contract, the leasing calculator still serves as a good way to obtain information or make a decision in advance.

Tips and tricks to save

There are certain aspects that customers can pay attention to in case of applying for a loan or taking out a mortgage. It is certainly important to take out a loan only if it is necessary and the ability to pay is ensured. The customer should also choose the loan rate according to his or her financial possibilities. The smaller the rate, the longer the repayment period. In this case, there is also an increase in interest rates and the loan is ultimately more expensive. Too high installments, which you can not pay, are also not suitable, because they narrow the financial scope. When applying for a mortgage, one should additionally pay attention to certain aspects. It is particularly important to have sufficient equity capital available. Because: the higher the equity, the more favorable the interest rate for the loan.

Banks prefer not to have to pay for all the capital. It is advisable to retain cash reserves in advance and to plan for incidental expenses in order to be liquid and to be able to pay for unforeseen expenses. Before applying, it is important to compare the effective annual interest rates at different banks – this is easier today thanks to the Internet.

Whether applying for financing online or on-site – both options offer certain advantages and disadvantages. The most suitable banks are those that offer online and on-site loan agreements, as this allows a customer to apply for a loan from the comfort of their own home and still contact the bank directly if they have any questions.

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