Everything you need to know about digital loans
It often happens that we have a well-defined budget for the day to day, with the purpose of reaching the end of the month without problems. But if something unexpected comes up, we’re in a bind!
Perhaps paying for an unexpected home repair, replacing a broken refrigerator, or simply securing a short-term supply, you may need a loan especially quickly.
At Magik Loans we are interested in providing you with the support you need. In this article, we’ll show you how to get a loan quickly and hassle-free.
What is an all-digital quick loan? It is a loan where you can stipulate your personal conditions without delay, receive an instant confirmation within minutes and download the loan application.
For several years now, bank customers have been undergoing a change. While it was the long-established banks that set the tone and moved rather slowly in many areas, online companies are disrupting the established structures.
A development that is increasingly being used in various product segments. This is how online banking has changed in recent years.
In the meantime, however, digitalization also encompasses completely different segments of classic banking services.
Loans have not been obtained over the counter for a long time. On the contrary: from application to granting, many loans are now fully digital.
This is possible, thanks to the expansion of the digital infrastructure. What are the special advantages of all-digital lending?
The fact that this sales channel is booming clearly has to do with usability. But transparency also plays a role.
One of the strengths of digital Internet lending is, of course, that it is comparable.
Compared to the classic route, via the bank branch, bank customers can now take a closer look at the conditions, with just a few clicks.
This still includes the interest rate. An online loan comparison should be able to do more.
Features such as special repayments, or pauses in installments, ensure maximum transparency.
It is precisely these aspects that should always be examined in comparison. Why should it be so important to take a close look at a bank loan?
It’s all about the money. Mistakes here can quickly become very costly.
For a long time, digitalization in the banking and payment transaction sector was mainly limited to online banking.
In recent years this situation has changed fundamentally.
In the area of lending, in particular, the development is accelerating. How does it all look in practice?
Many banks now offer fully digital loan applications, with only three steps: Completing the application, sending the documents to the bank and verifying your identity.
Being handled entirely online, it has been possible to complete loan applications for several years.
Then, the applications had to be printed and sent to the bank with the required documents, using the PostIdent procedure.
Today the applications are completely digital. Not only is the application sent online, but with a digital account check, the amount of paper for the application is significantly less.
In addition, the VideoIdent procedure simplifies the application and assignment.
Applicants only need a device with a camera and a stable broadband connection.
Unfortunately, this is the bottleneck in some rural areas.
The last step is the digital signature, so it is no longer necessary to send a manually signed document.
These advantages ensure that a digital loan can sometimes be settled within 24 to 36 hours after application.
Most providers require documents to be mailed, which takes a few days. In order for you to receive your loan faster, as many of the processing steps as possible should be done online.
At Magik Loans, only 3 steps are required: Complete the application online, which takes only three minutes. Then get your application approved in about an hour after you have made the request. Finally, you will receive your transfer instantly.
Of course, like any good loan company, Magik Loans requires a small, very reasonable amount of collateral to accept your application.
This guarantee is based on four very simple conditions: Having held the same job for more than six months, receiving your salary by direct deposit, earning more than $1,200 per month, and, of course, being of legal age.
To conclude: What should you consider with a loan?
Getting loans online directly, through an all-digital application path, is one side of the coin.
The other side is choosing the right loan. As already mentioned, it depends a lot on the interest rate. The first motto here is to pay attention to a low interest rate first. Remember to check:
this is the option to repay part of the loan outside the payment schedule.
The amount varies from bank to bank. While some banks offer full replacement free of charge, other banks limit the special repayment to a certain amount.
Personal circumstances may change during the term. Financing that can be adjusted in terms of repayment naturally has huge advantages here.
It is therefore worth checking this aspect, as part of a loan comparison. In addition, installment breaks can help to skillfully overcome financial bottlenecks.
Choosing the right execution time:
the length of the execution time affects several parameters.
On the one hand, it includes the amount of the monthly fee. On the other hand, it also determines the interest costs.
If a loan has a longer duration, the interest is calculated over a longer period of time. Therefore, borrowers should only choose the term, provided they can manage the rate well. Anything beyond that would be a waste of money.