The processing fee for an online loan
A credit request is initially free. However, if it comes to a loan agreement, so in most cases, a processing fee is due, which makes the loan even more expensive. To win new customers, however, some banks refrain from it and offer an online loan with no processing fee.
What about the interest rates?
The banks have to get the money back somewhere. As a rule, they do this through interest. In the end, that does not even strike you at first. However, who compares the offers of the banks exactly with each other, notes that in the absence of a processing fee, the interest rates are the same.
Basics about an online loan with no processing fee
A credit inquiry is always free. No processing fee may be requested for the request. Serious banks or financial service providers do not do that either. Only dubious intermediaries charge a fee. However, if a credit agreement is concluded, a processing fee may be charged. Who puts the loan application online, sees immediately at a glance, how high the interest and the processing fees are. This is the practical side when applying for a loan online. It is also usually the online banks that want to attract new customers with good terms. Branch banks usually charge a processing fee for a loan agreement.
The Internet can save consumers a lot of money. Even though the processing fee may not be that high, it is still beneficial for the borrower to drop it. Almost only the online banks offer this service.