Loan vs. Conventional Credit: who has the best rate?
May 14, 2019
Despite falling borrowing rates in recent years, credit applicants are still looking for the best rate. Objective: to limit the cost of credit and consequently the repayment period and the amount of monthly payments. As such, contracting a loan conso is more advantageous with a credit platform between individuals. Explanations.
Credit platforms: shared costs
Borrowers generally tend to contact their bank advisor or visit a conventional branch. However, a new formula is attracting more and more French, attracted by particularly attractive borrowing rates and expedited and simplified formalities: the use of a credit platform. Indeed, online credit is proving to be a less expensive solution in the event of a consumer loan.
A platform does not have the same expenses as a conventional bank. Without agencies to network the territory, this type of structure limits its rents and optimizes its personnel costs. The principle is very simple. OurLoan-saving, for example, operates on a fully shared model in which a community of investors lends to a community of borrowers. Direct credit is therefore much cheaper than conventional credit.
Credit Platforms: Fair and Competitive Borrowing Rates
To understand, let’s get into credit detail via OurLoan-saving. You submit an online credit application that will be accepted within a few hours depending on your resources. If accepted, you will receive the funds in record time by bank transfer. If you ask for € 5,000 for example, you will be charged € 95 for the file and staff fees of the platform.
The interest will be fully paid to the investors. This system guarantees fair and competitive rates. This is very different from traditional lending, the higher cost of which is passed on to borrowers.
Credit platforms: a transparent loan
Opting for a consolodation loan via a credit platform rather than through a conventional financial institution is also ensuring fixed monthly payments without any risk. Indeed, the borrowers at OurLoan-saving all benefit from a fixed rate and identical maturities. No hidden costs, hidden clauses or revolving credit, clients are clearly informed of their loan and the study phase of the file.