What are online loans & which types are available?

Online loans are financial products that can be requested and approved online, without the need to visit a bank or financial institution in person. These loans allow customers to quickly obtain the necessary funds for various purposes, such as personal needs, education, real estate purchase or business financing. 

What are the key characteristics of online loans? 

• 100 % online application process: No need to leave the comfort of your home or office. You can apply for a loan from anywhere, like your favorite comfortable chair in your living room or airport lounge while travelling, and at any time while not waiting in the queue. 
• Fast process: Online loan applications are usually processed faster than traditional loans, often within hours or days. It is important that you cooperate promptly with customer service, as pointed out as well by our agents in Ferratum, in delivering requested information for the process to be truly fast. 
• Simple & secured process: The application process is often simplified and requires minimal paperwork, making it accessible to the general public. We in Ferratum are proud to use state-of-the-art technology during onboarding and approval process so your personal and financial data is safe and secure.  
• Flexibility: Online loans often offer flexible repayment terms, including the ability to adjust monthly installments according to the financial capabilities of the customer. Based on the market, if you choose Ferratum as your lender, you can choose your preferred date of repayment or reschedule the payment if needed. 
• Affordability: Ferratum understands the importance of proper due diligence when it comes to customer's affordability assessment. Using various AI scoring models and Account Information Service Providers (AISPs) we are able to assess customer's possibility to repay loans on time while keeping their financial situation stable. 
• Transparency: Most online platforms provide clear information about interest rates, fees and repayment terms, allowing users to make informed decisions. This is one of the most important characteristics when choosing your creditor. We in Ferratum take this seriously and are proud to consider ourselves as a responsible lender. 

What types of online loans are available? 

With the development of technology and the digitization of the financial sector, online loans have become increasingly popular. As mentioned above, we are proud to say that we have partnered with the best in business providers, specially when it comes to identification and data security. In this blog we will also explore the different types of online loans currently available. 

• Cash or non-purpose loans: Fast loans are short-term loans that are usually approved within a very short period of time, often within 24 hours. These loans are ideal for urgent financial needs, such as unexpected expenses or emergency situations. Although they are available quickly, interest rates can be high, so it is important to evaluate the terms carefully. 
• Consumer loans: Consumer loans are intended for financing personal expenses, such as travel, buying furniture or starting a small business. They can be short-term or long-term, depending on the needs of the user. 
• Education Loans: Education loans allow students to finance their education and related expenses. These loans can be available through traditional banks or specialized online financial institutions. They often come with more favorable interest rates and flexible repayment terms, especially for students. 
• Loans for small entrepreneurs: Online loans for small entrepreneurs provide financial support to companies looking for funds to grow or start a business. These loans can be used to purchase equipment, cover operational costs or invest in marketing. Many online lenders offer flexible repayment terms to suit the needs of entrepreneurs.
• Refinancing of existing loans: Refinancing through online platforms allows users to move their existing debts to more favorable terms. This may include lower interest rates or longer repayment terms. Online lenders often offer quick appraisals and a simple refinancing process. 
• Mortgage loans: Although mortgage loans are traditionally tied to physical banks, more and more online platforms are offering this type of financing. Online mortgage loans allow users to quickly obtain an advance for the purchase of real estate, with often more favorable terms than in conventional banks. 
• Loans from crowdfunding: Crowdfunding platforms allow individuals and small businesses to raise funds from investors online. These loans often come with flexible repayment terms and can be targeted at specific projects or ideas. This form of financing is becoming increasingly popular, especially among young entrepreneurs. 

Online loans represent a diverse range of financial products that can meet the various needs of customers. However, we in Ferratum, as a responsible lender, believe it is important to carefully research all available options, compare terms and understand all the costs associated with the chosen loan.  

It is always recommended to consult with a financial professional before making any borrowing decisions. This is why we have opened numerous communication channels where customers can reach us directly during working hours or send us an inquiry to which we respond in a timely manner.  

In Ferratum we love to receive feedback from our customers, so we encourage it on a daily basis. We use our customers' comments, which sometime include criticism, to improve our products and services, and our products are, in the end, tailor-made to fit our customer needs. We are proud to say that Multitude always has your back!