The content of the article
- What customers are afraid of?
- Why is online clearance ok?
- How does applying for a loan look online??
- What conditions can be when applying for a loan online??
Online Credit
What customers are afraid of?
The main fears can be stated as follows: “the electronic contract has no legal force”, “the bank can unilaterally raise the rate, and I will not have any evidence in the form of a document”.
Firstly, the electronic contract under the Civil Code (clause 2 of article 434 of the Civil Code) has the same legal force as the contract drawn up at the bank branch. The contract can be concluded not only on paper, but through electronic, telephone and other communications.
Secondly, you should carefully read the contract before concluding it. Find out if it indicates that the bank has the right to change the rate unilaterally without notice (it will be strange if you see such lines). If not, then there is nothing to worry about. An electronic contract is considered concluded from the moment you receive the funds in the account. You can print the contract and keep it in paper form for your peace of mind..
Thirdly, the transition to the digital format is not a way to impose quick loans or to deceive you, but one of the accompanying changes in the course of general digitalization. In short, one of the tasks (according to the strategy of the Central Bank) of the banking system is to reduce risks for banks and simplify procedures for customers. For example, thanks to digitalization, banks can already find out from the general register about the assets of clients mortgaged in other financial organizations and give an answer on the loan.
Why is online clearance ok?
The last ~ 6-7 years, banks have been actively developing online platforms, Internet banking (IS), automating processes in order to maximize the transition to a digital work system..
In May 2019, at the XVI Banking Summit on Innovations and Development, Alexander Rybakov, Vice President and Director of Products Department at Bank Saint Petersburg, emphasized the need and irreversibility of digitalization. Already at that time, some banks had a large percentage of contacts with customers through digital channels (from Bank St. Petersburg – from 95%).
The transformation of an offline structure into a “digital bank” is a natural process of evolution of financial instruments. An indicator of this is the reduction in the number of branches. According to experts, the “digital bank” ideally is a bank without branches.
The number of branches per 100 thousand retail customers (data as of May 2019):
| Name of the bank | The number of branches per 100 thousand customers |
| VTB | 18.0 |
| Opening | 16,4 |
| Rosbank | 13,2 |
| Sberbank | 10.8 |
| Moscow credit bank | 10.1 |
| Gazprombank | 9.3 |
| HOME CREDIT BANK | 9.1 |
| Sovcombank | 8.5 |
| Raiffeisenbank | 8.1 |
| otpbank | 5.9 |
| UniCredit | 5.2 |
| Alfa Bank | 4.8 |
| Bank “Saint-Petersburg | 3.3 |
Banking specialists studied offline customer experience and created a convenient and secure platform for online interaction. As a result, the share of loans issued through digital channels is growing every year..
How does applying for a loan look online??
In the personal account, the client fills out a questionnaire and sends an application. You must confirm your consent to check the credit history and the processing of personal information with a code from SMS.
After checking the credit history, the Bank approves a loan for a certain amount. Next, you need to familiarize yourself with the terms of the loan and the parameters of the contract, indicate to which the amount will be transferred and a convenient repayment date. By clicking the “Get a loan” button, the client is redirected to the page for signing a loan agreement.
The form to fill out may look like this:
At the next stage, the client gets acquainted with the terms of the contract and its parameters (full cost of the loan, interest rate, and so on). Each item must be checked, thereby subscribing to these conditions. Having confirmed its agreement with the terms of the contract and the payment schedule, the client expects the transfer of funds. As a rule, the loan amount is credited to the account instantly. The contract can be printed, but this is not necessary, its electronic counterpart has the same legal force as a paper document with signatures issued at the office.
1) If you are a payroll client
If you are a payroll client, you probably noticed that offers to get a loan online come to you at least 1 time in several months. Why is the bank so persistent? Because you are a reliable client for him – your salary goes through the bank, the bank has a guarantee of receiving a stable loan repayment.
If you planned to take out a loan, but are afraid to apply for it online, then in vain. The main thing is to evaluate the interest load and keep in mind that the money on the loan will be debited from your payroll account. Do not take more than you can afford.
2) If you do not get paid in this bank
When registering online, just enter your passport data. After sending the application, a specialist will call you during the day to discuss the details. A non-salary client will have to provide a certain “minimum of documents” depending on the amount:
- If you need up to 100,000-300,000 rubles, then a passport is enough (the amount varies in different banks).
- If you take a loan in the amount of 100,000-300,000 rubles, you will need a certificate of employment in the form of a bank.
- Some banks accept an online statement from the FIU without a statement of income:
Screenshot of the conditions for obtaining a non-salary client loan at St. Petersburg Bank
What conditions can be when applying for a loan online??
The conditions are the same as when applying for a loan offline. You may be offered to take out insurance under the borrower’s life and health insurance program, as well as protection against job loss. The cost of insurance is usually small, it will be included in the cost of the loan. Remember that the conclusion of an insurance contract is not a prerequisite for obtaining a loan, but loan conditions with insurance can be much more beneficial.
The material was prepared in consultation with the specialists of Bank Saint Petersburg.
Is applying for bank credit online safe or should I be concerned about potential risks?
Is there a reason to be concerned about applying for bank credit online? Are there any specific risks or disadvantages that should be considered before opting for internet banking?
Applying for bank credit online can be convenient and efficient, but there are certain risks and disadvantages to consider. One major concern is the security of personal information. Hackers could potentially access sensitive data such as bank account details, social security numbers, and other personal information if proper security measures are not in place. Additionally, online scams and phishing attempts are common in the digital world, posing a threat to unsuspecting individuals who may fall victim to fraudulent websites or emails. It’s important to verify the legitimacy of the website or financial institution before entering any sensitive information. Furthermore, some people may feel uncomfortable with the lack of face-to-face interaction and personalized customer service that comes with internet banking. Overall, while there are benefits to online banking, individuals should remain vigilant and cautious to protect their financial information and privacy.