In Spain, the granting of consumer credit has been a financial operation that has traditionally monopolized banking. It is not surprising that there is still something of that past reminiscence of going to the usual bank to take care of everything that has to do with our domestic economy.
In fact, the most normal thing when a person requests a personal loan to finance any project, large or small, such as renovating a house, buying a car or even facing the dreaded return to school, with the corresponding expense in materials and books, is that you request it from your trusted entity.
The problem of resorting to the bank of a lifetime as if it were a divine mandate, without giving yourself the space and time to search and compare offers, means limiting the range of options that currently exists in the Spanish consumer credit market. In recent decades, banks have come out with a strong competitor, not only with online banking, but also with the so-called financial credit establishments or EFC, for its acronym. The latter are entities that lend money with the authorization of the Bank of Spain, but do not keep it as, on the other hand, banking entities do.
According to experts from the financial comparator HelpMyCash.com, “it is not about demonizing traditional banks, because many have products with very competitive interests, especially if the person has a good profile. But the search should not be limited either, because there are lesser-known financial companies and online banks that can offer better conditions.” According to the analysts of the comparator, there are two main reasons why the client should also value the personal loans of other entities before deciding to request his with his bank.
There are online entities that grant financing below the average, which currently stands at 6.4%, according to the Bank of Spain, and in more attractive conditions than traditional banks. The Cofidis Personal Loan, for example, has a starting interest of 4.95% TIN (5.06% APR) and allows you to obtain between 6,000 and 60,000 euros to be used for the project you want to undertake, with a repayment term of between one and ten years. It can be contracted without the need to open an account with the entity, nor domicile income or change banks.
It is important to highlight that the interest that the entity finally applies will depend on the economic profile and solvency of the client, "as happens with any financing product, regardless of who grants it", they explain from HelpMyCash. The logic is as follows: the more guarantees are shown that the money will be returned within the agreed time, the more the interest is limited.
It is the way that finance companies and also banks (online and traditional) have of not taking unnecessary risks due to a possible default. That is why in the publicity they make of their credits, no matter the support, the reference to interest is always accompanied by the preposition "from".
When looking for a personal loan, interest is the first thing the applicant stops at. However, it is not the only variable that affects the price of financing: related products, such as contracting insurance, and opening, study or amortization commissions (total and partial) can make its final cost much more expensive.
If the person wants to save these expenses, there are more possibilities of achieving it if they go to an online entity, because they rarely charge them, contrary to what happens with traditional banking. This is the case of the Bank Norwegian Loans, which allow you to request between 500 and 50,000 euros, to be repaid within a maximum period of ten years and do not associate the payment of commissions or any extra disbursement. The interest, from 5.99% NIR (6.13% APR), is also below average and can be contracted without changing banks.
On paper, online loans associate many advantages. Not only because of its attractive conditions, but also because of the speed that usually characterizes the application and approval process, through the Internet. Now, as with any financial product, it is important to always compare and request financing from various entities, they explain from HelpMyCash. “The ideal is to get several binding offers and see which one best suits the applicant's needs. With them, you can also go to the bank of all life and see if it presents a counteroffer that equals or betters those of online entities, something very likely if the person has a good and stable economic situation, "they add.
On the HelpMyCash website you can check which other banks and finance companies offer the best credits to compare and determine which one would pay more.