Online lending is rarely offered by banks. This service is available only in microfinance organizations, which issue loans both faster and easier.
What are the benefits of an online loan?
People are used to simplifying everything that can be simplified and made easier. The Internet is a great help in this regard, as it allows us to solve a huge number of tasks that used to take a lot of time and effort. One of these tasks is obtaining a loan. This procedure can be completed remotely via the Internet. If we compare this option with the “usual” loan obtainment in a branch, online processing looks ten times easier, because
- no time and effort is spent on traveling back and forth (for residents of large cities, it can take more than one hour)
- no need to stand in lines;
- there is no need to adjust your schedule to the opening hours of a branch.
As a result, online loan processing is faster, calmer, and easier. You can do this from anywhere where there is an Internet connection: from home, from work, or while standing in a traffic jam (from your smartphone).
Can I get a bank loan online?
Some banks’ websites offer the opportunity to submit an online loan application. It is reviewed and a preliminary decision is made, but then you still have to go to the branch to bring documents and write a more detailed application. Some Ukrainian banks (for example, Privatbank) offer online loans for small amounts without personal presence. But this applies only to regular customers. If you are not a client of such a bank, you will most likely not be granted a loan remotely. Another option for online banking is to get a credit card. This is a slightly different form of lending: the client receives a plastic credit card up to the approved amount (the amount is usually less than the amount issued by MFIs). He or she can use this money for any purchase, either from the card or by cashing it out at an ATM. However, to get a credit card, you will still need to either visit a branch or meet with a courier. And you won’t be able to get a card quickly: at best, you will receive it within a whole business day (and in practice, it usually takes longer).
Alternative to a bank: how to quickly apply for an online loan from an MFI?
Minimum requirements, coupled with fast application processing, are the main advantages of MFIs over banking offices. A client in an MFI has to provide only passport data and an identification code, no more. Banking organizations require more documents, including a good credit history and income statement. Sometimes they even require a guarantor or collateral for a loan. Moreover, such serious requirements can be imposed even when obtaining microloans.
Basic requirements for MFI clients:
- Be a citizen of Ukraine.
- Be an adult (18 or 21 years old).
- Do not have an active debt with an MFI.
You can take out a loan online using the Bank-ua portal for verifying various financial organizations. The Bank-ua portal also contains reviews of real clients for each of the listed financial organizations. Microfinance organizations issue loans online to any bank card (of any bank in Ukraine). It is also possible to apply for a cash loan online and receive the money by courier delivery to the client’s home.