Online loan, how do you know if you are dealing with a serious organization?
With the progress of technology, online credit is really on the rise. Indeed, what is better than getting a loan without having to travel from home?
Online banking therefore responds to the concerns of the current population who are always trying to save time. On the other hand, the latter, with the aim of preserving the environment, strives to dematerialize most of the administrative formalities, including credit applications. In the end, we are witnessing a proliferation of online loan offers. This legitimately pushes consumers to ask the question about the seriousness of this or that organization.
Two types of lenders
It should be noted that in reality, there are two main categories of organizations that provide loans. On the one hand, there are specialized lending organizations. Their main activity revolves around credit operations. This means that, generally, their response times are relatively short.
On the other hand, we have the banking organizations which endeavor to grant credits to their customers, in order to retain their loyalty. They have the advantage of offering lower rates, but the decision process is usually longer than for the first organizations. However, whether for the first or the second, it is always necessary to be careful, because the risks of scam are real. Hence the importance of knowing the criteria that make such a body can be considered serious or not.
In order to be able to grant loans to its customers, a credit organization must fulfill a certain number of criteria. The first of these is to obtain authorizations issued by the Cream Bank to exercise such an activity. In addition, it must be recognized and placed under the supervision of the Prudential Control Authority (ACP), an entity where it must regularly declare its accounts, according to the legislation in force.
In addition, it is important to look at the financial health of the credit institution. Indeed, it is possible that a certain number of customers cannot repay their loans. In this case, the organization must have sufficient equity to face this risk, without jeopardizing its existence. The ideal is therefore that it be affiliated with a parent company which has a substantial share capital, in order to cover all the risks linked to its credit activity. Moreover, the amount of these equity funds has just been revised upwards by the Basel 3 agreements, following the financial crisis that shook the world at the end of the 2000s.
Various ways to find out
The Internet is your best ally to collect all this information without wasting time. You usually just need to type the name of the establishment on your search engine to discover the site of the lending organization.
You can find all the information previously mentioned to help you learn more about the establishment. These include the terms and products he offers to his customers. You should also not hesitate to read the legal notices and the general conditions which are posted on the portal of the organization.
It is also recommended to pay your full attention to these documents which reveal the commitments made by the latter. If you do not understand certain technical terms, do not hesitate to ask for explanations from your customer advisor or a connoisseur.
If the lender does not have a website, this does not mean that it is not serious. To find information about the latter, you can already ask around. Friends, neighbors, colleagues or family members, there is surely someone who has already taken out a loan from the organization from which you plan to apply for a loan. You can also read reviews and forums for positive or negative feedback on the establishment. Finally, you can use a credit comparator to find the best deals and at the same time learn a little more about a specific organization. There are thousands of credit comparators on the web and they are mostly free. Moreover, some of these sites offer to assist you in your credit application, which testifies to the seriousness of the establishments with which they collaborate closely.