A so-called online payday loan is nothing more than a commercial loan that was applied for via the Internet. The advantage here is the time saved, because in contrast to a branch loan, the consumer deliberately foregoes a comprehensive consultation in the branch of his house bank or a credit institution.
It is often wrongly assumed that an online payday loan does not require a credit check and the general credit rating check process. However, this is in no way the case and the examination process by a clerk takes place as usual.
How does an online payday loan work?
In principle it is very simple: You get a corresponding offer, fill out the forms directly online and send the required documents directly to the lending institution via the post-identification procedure. The post-identification procedure is required by law and must be used, but this usually does not incur any costs for the borrower.
Depending on the result of the check, the loan is then approved or not. An advantage of an online payday loan is that it often checks the creditworthiness much faster and checks the credit decision faster. However, when submitting the application, the consumer has to do without comprehensive advice from a professional and obtain most of the information himself.
What are the legal guarantees for an online payday loan?
An online payday loan in Germany is subject to the law on distance contracts. This means that the borrower has a legally guaranteed right of withdrawal and a number of information must be made available to him. Legislators in particular do not understand fun with online payday loans and if the lending institutions make mistakes here, a loan contract can quickly become invalid. Nevertheless, the consumer remains responsible and must inform himself accordingly about the content of the contract.
If he does not do this and the material is made available to him in good time, there is no chance of withdrawing from the contract due to incorrect information on the part of the provider. There is also no obligation on the part of the lender to conclude a loan agreement. On the contrary, you are obliged to examine each application individually and to approve or reject it according to the evidence provided about collateral and income.
If you are looking for a suitable loan for debt restructuring or for an acquisition, you should definitely compare the existing offers based on certain criteria. Because there are often particularly cheap and worthwhile offers that do not come into view even with a more precise search. In addition, the comparison with the best conditions can really be selected and concluded.
This not only saves time and nerves, but also cash directly after the completion of the repayment. In addition, a comparison can be used to check whether the provider is really trustworthy and does exactly what it promised in advertising. So comparing is always worthwhile and should always be done in detail for each loan.