A loan with online approval has become an integral part of many banks’ offerings. Direct banks in particular, where all business is done exclusively by telephone or over the Internet, attract customers with such products.
The advantages for the borrower are obvious. On the one hand, the application for a loan is kept very simple, on the other hand, the examination takes only a short time, so you can be certain after a very short time whether you can plan with the amount requested. In addition, the bureaucratic effort for the bank is comparatively low, and the customer also benefits from these cost advantages.
The requirements for a loan with online approval are relatively low. As a rule, it is sufficient to fill out a corresponding form on the Internet and state the monthly income. Of course, proof of this must be provided, either in the form of monthly salary payments to the account or by a certificate from the employer. If the monthly charges resulting from the loan amount and term can be covered by the income, the loan with online approval is only a matter of form.
With self-employed people and freelancers, on the other hand, it is not so easy to get a loan with online approval. While employees who are subject to social security contributions only have to present their salary certificates to the bank, the self-employed cannot easily present a regular salary. Here it mainly depends on the relationship with the bank; Your own house bank is often quite accommodating, especially with smaller sums, but foreign institutions usually shy away from such a loan.
How high a loan with an online commitment can be depends primarily on the business policy of the respective bank. In most cases, however, such loans are limited to medium four-figure amounts. As consumer credit, they are often granted up to a sum of 50,000 USD. However, some banks are now even making commitments for real estate loans on the Internet, where the loan amount is of course significantly higher on average.