Online banking: a good plan to find the best loan rates?

Online banks are more present in our lives every day. the all dematerialized seduced, especially in these times of health crisis, where everyone is trying to do their homework. Online credit applications are also successful. Most online banks now offer this service and their offer is often comprehensive. And it seems that this is a good plan to find the best loan rates!

Best Rate Online Banking

Borrowing from an online bank, many advantages

If online credit is on the rise, it is not without reason. Request form completed in a few minutes, response in principle often immediate, steps going as far as complete digitalization with electronic signature are all assets. But is it more advantageous, and are the interest rates competitive?

Online banks have a full product offering

Almost all online banks offer a wide range of loans. Boursorama, BforBank, Fortuneo, Monabanq, Orange Bank have complete consumer loan formulas. With the exception of Orange Bank, they also offer mortgage loans. Unallocated personal loan, permanent credit, auto-motorcycle credit, loans, whether or not approved, you can easily find an offer that meets your needs.

Another advantage, some online banks do not request the direct debit of the bank account to grant a mortgage.

An easy and fast loan application

Simple And Fast Online Credit

To make an online financing request, there is no need to make an appointment with your banker. Everything is digitized, the file is created from a computer, smartphone or tablet. Supporting documents are uploaded directly to the bank’s platform.

Online banks, more advantageous interest rates

What makes online banks attractive are the preferential rates they offer. Competition is fierce with traditional banks. To gain market share in the juicy mortgage market in particular, they are very competitive.

Their unstoppable argument? The irresistible call rate. The announced borrowing rate is fixed and clear. This makes the difference with so-called traditional banks, with which you often have to negotiate. For example, in November 2020, Boursorama Banque announced a fixed 20-year APR of 1.06% on mortgage loans. And 0.95 on a personal loan, from € 10,000 borrowed over 12 to 24 months.

Take out a loan from an online banking establishment, the disadvantages

There are, however, a few drawbacks to borrowing from an online bank. If the formula is practical, the offer is however less personalized. Another downside, everything is done online, there is no direct contact, which can annoy some customers.

Applying for credit should be simple

First, an online bank will not take care of a file that is too complex to put together. Clearly, either we fit in the boxes, or we do not. Putting together a personalized file is difficult, if not impossible.

Restrictive home loans

When it comes to home loans, the offer may lack variety. Boursorama is the only bank to offer tax exemption under the Pinel Law and only HelloBank and Monabanq are approved to grant a zero rate loan (PTZ). A loan for investment in the investment property in SCI is rarely offered.

If the bank domiciliation is not always requested for a mortgage, it is however imposed for consumer loans.

What are the three most competitive online banks?

As we have seen, the choice of online banking is made according to the type of credit sought. Nevertheless, three banks seem to us to stand out in particular:

 BoursoramaMonabanqING
Personal loanYesYesYes
Revolving creditYesYesNo
Auto / motorcycle creditYesYesYes (personal loan without proof)
Works creditYesYesYes (personal loan without proof)
Mandatory bank account openingYes for personal loanYesNo
Personal mortgage loanNo (except home loan guarantee)No (except for notary fees and housing loan guarantee)No (except for notary fees and housing loan guarantee)

 

Conclusion

The borrowing rates offered by online banks are often more advantageous.

However, it is advisable to only rely on the APR to be sure not to have any unpleasant surprises, such as very expensive insurance, when signing the contract. Only the APR takes into account all the costs and gives a reliable indication.

So take the time to study the different offers to find the cheapest credit possible.

In addition, never lose sight of the fact that, as attractive as the conditions for obtaining a loan may be, it commits you and must be repaid!