To understand what a personal loan is, we could stick to the strict definition of its two terms: a loan, a sum loaned, therefore, and personal, by its private nature and specific to each. So even if the explanation is not so simple and above all, needs to be completed, we are still on the right track.
To see more clearly the personal loan is a consumer credit loan of 200 $ to 75,000 $ for a minimum of 3 months. The amount borrowed does not correspond to the precise purchase of a good (car, motorcycle, real estate, etc.). The borrower can use the amount of his financing as he wishes and simply meet a need for cash, without the need for supporting documents such as an invoice.
Historically, this type of credit was offered by traditional banks, then financing organizations specializing in loans, but in recent years, new players have entered the market.
How Fintechs now offer 100% dematerialized products
The digitization of the economy has not spared the banking and finance sector. The dematerialization of relational exchanges, financial processes, and monetary flows has also favored changes in resources and products. Initially, the behemoths of the sector such as institutional banks nevertheless remained in the foreground for a long time, continuing to appear as the only credible response to demand. Then many online banks have sprung up. They have contributed to the acceleration of digitization but also proposed opening up the sector - which until then had been thought untouchable - to new players: Fintech and neo-banks.
In 10 years, many companies combining finance and technology have been born, offering various services: money management or online kitty (Leetchi, Lydia,) but also crowdlending and credit services (October, Yelloan, Younited Credit).
How to get a 0 paper personal loan?
In fact, the multiplication of banking and loaning servers now makes it possible to carry out any financial action directly from your computer or mobile, without having to physically move. This option is a boon for people who want to get rid of tedious administrative processes. Those who are short of time will also find their account there. And also those who seek to reduce their ecological impact, moving towards a zero paper lifestyle, will recognize the usefulness of Fintech and neo-banks.
Thus, it is quite possible to obtain financing, such as a personal loan, with a few clicks on the internet. You will then be asked to enter your project, the amount you want, and information related to your borrowing capacity. Once “pre-validated” thanks to your declarative elements, you will have to complete your request with your supporting documents related to your status, scanned or photographed,
In addition, its collaborative model offers a different angle to the sector. Indeed, Fintech is a credit platform that allows professional investors to deposit funds that will be used to finance loans to European households. Interest on loans is paid back to investors, a way of shaking up savings products, which are not very profitable today. United intends to revolutionize the banking system, which is not very transparent and not fair enough just for its taste.
The 3 points to remember about the online personal loan
a personal loan is a Kredit Pintar pinjaman online ojk that can meet a need for cash without specific proof.
online banks, neo-banking, and fintech facilitate access to this type of financing, with 100% online and zero paper requests.
the Younited product, guaranteed by banking authorization, has many advantages and is part of a collaborative model. A snub to the banking sector.