Appeared from this, at least, 4000 years ago, credit is a practice that has evolved over time. Its basic principle remains, however, the same: to lend money to a person (physical or moral) and to be reimbursed, with a remuneration (interest).
Traditionally granted by conventional financial institutions (banks), credit has gradually been “digitized”. Online credit, or credit on the Internet, is now part of the services offered by banks.
How are they different from their counterpart in conventional banks? Elements of the answers in the paragraphs below.
Online Credit: What is it?
It is a type of credit, granted almost exclusively by online banks, with generally more flexible terms than conventional credit. He has a big advantage, which is to allow his claimant to do all the work without moving.
Once his request is sent, he gets an answer within 24 hours. Indeed, the agreement in principle can be obtained within minutes of sending, provided that the project is deemed feasible. In the process, the essential information is made available to the customer: the monthly payments, the duration of the repayment, the interest rate, the amount of monthly payments.
The case of credit work on the internet
The credit works is a type of credit granted, for the realization of certain accommodation arrangements: renovation, expansion, adaptation to disabled, thermal insulation. Embellishments, kitchen alterations, conservatories or decorations are also eligible for this type of loan.
However, terraces, fences and other outdoor facilities are excluded. Whatever the need, the nature of the work will be agreed with the bank. Therefore, supporting documents will be required to verify the conformity of the work, and allow the establishment of credit.
Differences with credit work of conventional banks
Institutions offer two types of loans (or loans) for housing projects. First of all, there is the personal loan, with which the borrower has the freedom to use the money as he pleases. In this case, the customer will fill in the solvency files and the conditions of resources, allowing him to claim this type of credit.
Then there is the assigned work credit, whose use is exclusively reserved for the realization of the work. In other words, this type of loan does not offer flexibility. On the other hand, most online banks offer loans of one type, opening to different types of projects.
How works credit works on the internet
In the research process, comparators exist on the internet, making it possible to obtain several offers at the same time. The applicant therefore decides, only after having studied all the offers submitted to him. It is actually simulations, informing about its monthly payments, its interest rate, the duration …
An element to be taken into consideration in these simulations, the APR (annual percentage rate of charge). After simulation, a summary page summarizes all credit related information. Once granted, the applicant goes online to sign the agreement. To assist customers, online banks provide advisors who can be contacted 24/7.
Conditions of credit internet works
The credit works online obeys the conditions for granting credit in conventional banks. The applicant must be a physical person or legal entity, whose main residence is in France. Thanks to the multiplicity and diversity of the offer, customers can find the most suitable loans for their projects.
Some establishments even offer guides for this purpose. After signing the contract, the customer has a withdrawal period of 14 days.