Take out a loan online

Increasingly, credit portals and loans are advertised from the Internet. Whether in magazines, online or even in television advertising online loans are ubiquitous. If you are thinking about applying for a loan today, you automatically think about getting information on the Internet. Only 10 years ago, the only possible way was to your own house bank, today the situation looks different.

The Internet brings numerous advantages for the borrower. Through online loans, banks are facing real competition with other loans for the first time. The Internet not only compares the loans of individual banks with each other, but is also still the breeding ground for online banks that offer only online loans.

Tip of the editorship

Even if you want to take out a loan at your local bank, it is absolutely recommended to use a loan calculator online beforehand. This is free, doesn't commit you to anything, and gives you a transparent overview with little effort. With the conditions you have found for online loans on the Internet, you can approach your bank consultant in a personal conversation.

Direct banks have the advantage of not having to operate bank branches in many locations. Costs incurred by bank branches, on-site staff and property maintenance must be covered by income from financial products. The online bank, on the other hand, lives 100 percent from the web presence and saves many additional costs here. These savings can be passed on with the services, by more favorable conditions to the customer.

Advantages and disadvantages at a glance

  • Interest: Often more favorable conditions
  • Choice: No commitment to a particular bank
  • Transparency: good transparency and comparability through loan calculators
  • Speed: Often faster processing than at the branch bank
  • Contact: No personal contact with the customer service representative
  • Symbiosis: Possible symbiosis through several financial products can not be used
  • Effort: borrower is burdened with more research

For example, use our loan calculator and enter the required key information about your desired loan. Within seconds you get an overview of all offers that are available. Directly from the comparison, you can apply for their online loan.

In the next step, they receive all the necessary documents by mail from the chosen bank. Fill out these documents, submit all the necessary documents and white by PostIdent procedure.

Taking out loans online – new technologies make it even easier

Even if numerous banks, especially branch banks with online loans, still adhere to the PostIdent procedure, other banks show that it can be done differently. The fully digital loan application is becoming increasingly popular.

The customer still uses credit comparison for online loans. If it found the suitable product, it goes as usual on the side of the offerer. There he fills out all the forms on the screen that are necessary to be able to take out an online loan. Also not new is that he sees the loan offer immediately on the screen, respectively receives by e-mail. At this point, online loans usually came to a medial break.

Direct access allows the applicant to give the bank one-time access to his or her checking account. This eliminates the need to copy or print and send account statements. In the next step, he uses the electronic signature to make the contract legally binding. Finally, the customer identifies himself using his valid ID card or passport with confirmation of residence as part of the VideoIdent process.

No more paper, no more trips to the post office – it couldn't be more convenient to apply for an online loan.

Taking out an online loan with a branch bank

Branch banks also offer online loans, which is not uncommon. For the consumer, however, there is a hidden pitfall here. The loan comparison shows that the conditions are quite acceptable, so why not visit your own bank again and take out a favorable loan?

In this case, it is advisable to take a very close look at the tied borrowing rate and the APR and compare them with the figures from the Internet. It quickly becomes apparent that these interest rates do not correspond to the information on the Internet, but are in some cases significantly higher.

The banks also immediately have a suitable answer ready, which is why it is more expensive in the branch than to want to take out an online loan. An advisor sits in the branch to provide competent advice (and takes the forms from the printer). Now, the lending rates in the branches are not set in stone and are certainly negotiable. It may well be worthwhile to raise the issue of interest on online loans for a contract in the branch. The employee has sales targets, he must sell.

Where do Germans take out loans?

Interesting is the question of how borrowing has changed. The following table with figures from 2013 provides information on this and shows that online credit has long since found its place:

Type of credit In percent
In the branch 37
By other means 28
Online presence of a bank 14
On-site with an intermediary 10
Online loan comparison portal 7
Financial advisor 5

In the period between 2014 and 2017, the share of online loans rose from 21 percent to 27 percent. This figure combines the conclusion via a loan comparison portal with an application via a bank's homepage. In total, the percentage of those who apply for online loans increased from also 21 percent in 2013 to the 27 percent in 2017.

Mini loans – the ideal online loans

The growth of online loans continues steadily, as a new loan product has also established itself on the market in 2018 and 2019. We are talking about so-called mini-loans, which are granted exclusively online. Mini loans are classic online loans. They range between 50 euros and 2.000 euros. Repayment is made in one sum or in two installments, depending on the loan amount. In the Anglo-Saxon world, these loans are known as "payday loans" because they are repaid when the salary is received.

Anyone who wants to take out such an online loan can look forward to an extremely slim loan application. Some providers do not even require a minimum income and do not make a Schufa inquiry. If a provider asks for an income, it usually requires only 500 euros per month to be able to take out these online loans.

Installment loans in unbroken demand

The low level of interest rates is probably one of the reasons why the number of all loans granted has reached a fairly high level since 2006:

Number of installment loan contracts concluded in Germany from 2006 to 2018 (in 1.000)
in thousands
2006 6.514
2007 6.611
2008 6.870
2009 7.570
2010 7.212
2011 7.149
2012 7.697
2013 7.737
2014 7.434
2015 7.442
2016 7.671
2017 8.012
2018 7.888

What to look for when you want to take out an online loan?

Basically, there is little to consider when you want to take out a loan online. Of course, the interest rate plays a decisive role. However, it can also be useful to select in advance which providers accept free unscheduled repayments or early repayments. On the other hand, one or the other borrower may need an installment break. Also in this case there are banks that offer such a procedure already standardized and without additional costs. An important indication with regard to the possible interest rates is the two-thirds interest rate. It indicates the maximum interest rate paid by at least two-thirds of borrowers. The lower the two-thirds interest rate on an online loan, the greater the likelihood that you yourself will also benefit from the lower interest rate.

Same customer status despite online credit

Even if a loan is taken out over the Internet at one of the branch banks, the customer has the same status at the bank as a customer who was in the branch. So a credit application made on the Internet leads to no discernible disadvantages.

Almost every type of loan can also be applied for on the Internet. The options are many and for almost every loan variant there is a loan calculator and a comparison of many different providers. So don't be afraid to use the Internet and its many options.

It is interesting to see a small overview of which loan types users search for most frequently in Google.

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