A loan is an amount of money that one person or entity (usually a bank) loans to another under certain repayment conditions- payday loans apply for a payday loan online in minutes bridgepayday.com. In other words, it is an agreement between two parties that is governed by a set of documents and agreements (for the benefit of both parties). However, the number of documents required will vary depending on circumstance. Perhaps there is no such thing as an entirely paperwork-free loan, but this is as close as it gets. Discover why here.
Banks use loan applications to evaluate different elements that, when combined, determine a borrower’s risk profile. The risk assumed by the lender is ascertained using a complex equation that takes into account a wide range of elements such as the borrower’s employment situation and tax record, the type of credit requested, the repayment term and, above all, the amount of money applied for.
The bank will need time and resources to analyze an application and will usually charge the borrower an assessment fee. It will also require a lot of documents and several days in which to cross-check them. However, did you know that there is a way to apply for a loan without all this paperwork?
There is no such thing as an entirely paperwork-free loan. However, quick loans are different to traditional loans as they are easier to process and require fewer documents. One of the most common differences is that the repayment terms for a quick loan will be more stringent than for a traditional loan. In other words, with a quick loan, you will have to pay more interest over a shorter repayment period.
Some BBVA customers can access a Preconcedido Online Loan, which is a loan granted under the terms and conditions of a traditional loan, but with the speed of a quick loan.
These types of loans are processed without paperwork. BBVA customers can apply for a quick loan online (via the website or the App) or through the ATM network. This means that the money will be available with just a couple of clicks.
The interest rates charged on these quick loans will vary based on a customer’s relationship with the bank. This means that customers who arrange for their paycheck to be deposited directly into their account will be offered lower interest rates. The minimum amount that can be applied for via a Preconcedido Online Loan is €1,500. The interest rate on this type of loan will vary based on the profile of each customer.
A traditional loan, but easier
There is no doubt that quick loans have some advantages when compared to traditional loans: they are processed faster, can be applied for online, etc. However, as a quick loan carries greater risk, it will be more expensive than a traditional loan as the interest rate charged will be higher.
For example, a customer who has their paycheck or pension paid into a BBVA account will be able to access a ‘traditional’ loan with good terms and conditions without excessive paperwork in just two days. The speedy online application process of no more than three minutes will enable the bank to quickly understand all the details of the transaction and authorize the loan without having to perform numerous additional checks.
The documents usually required to apply for a loan include items that are easy to locate such as an ID Card, Tax ID, bank account and evidence of an income or paycheck. In many cases, not even a guarantee is required. The type of loan awarded and the speed with which an application is processed will depend on the borrower’s profile and their requirements. Another important aspect that will be taken into consideration will be their relationship with the bank.
Use the different tools BBVA offers to find out how much interest you would be charged if you were to apply for a loan today and what the terms and conditions of such a loan would be. Use the loan calculator to work out your finances without commitment and check out the online case studies, such as the loan awarded to finance a car