Online Loan or Branch: Are There Differences?

The search for a suitable loan can now be a major project. Thanks to the Internet, there are now a dozen providers available.

This is where banks with their own branch network, individual branches of large banks and many online providers are in favor of the customer.

All facts about the guide “Online loans or branch” at a glance:

  • Comparison portals for online credit have already made a pre-selection.
  • Borrowers can quickly and easily compare the online providers directly using the loan calculator.
  • Branches offer better customer service, are flexible and seek an alternative solution in an emergency, possibly even as a combination loan.
  • The cost of branch loans is more difficult to compare.
  • The personality and the personal situation of the borrower decide on the online or branch credit

1. The benefits of online credit


Online providers are able to give more favorable terms. This is clearly related to the fact that they have to include less fixed costs in their calculations. The lack of branches saves personnel costs, electricity costs and sensitive IT systems, which also require special maintenance and control.

Of course, an online loan provider must protect the data of its customers. However, here it is easier to protect them at a central server than to install a separate security server for each branch. In addition, certain data must be transferred between branches and the main office, but on the other hand must not be allowed to go outside. The protection of sensitive data causes enormous costs, which are usually passed on to customers.

Online vendors have discovered this potential for savings, and some are passing it on to their customers. With online credit providers are of course not the dubious criminals meant that go beyond the spam folder in the email box. These mails are to be deleted immediately and booked under the category “fraud”. By online credit providers is meant authorized credit institutions that work with products similar to those with direct customer contact.

Online providers take advantage of the Internet to be able to address a much larger clientele. They are not limited to regional contacts and have a strong customer service. Customer chat offers and advice on the phone.

To find the cheapest loan offers a preselection by comparison portals. Here it must be noted, however, that the selection criteria of the comparison portals do not necessarily match the own search criteria. Everyone sets different standards in the evaluation that are important to them. Therefore, the best online credit providers should be re-examined from their own point of view.

Above all, a new price comparison should be made by examining the existing situation in each of the credit calculators. The condition is that one’s own situation must be clearly formulated. This means that it must be clear how high the loan amount should be and how long the term can be. In order to do that you have to make yourself aware of your situation in advance and not make any utopian claims on yourself.

You also have to be aware that lenders are also checking against you. Online providers as well as banks with branch network. Although currently advertising online providers with their fast order processing and that they also serve customers with negative Schufa entries, but a too high risk, even online credit providers do not enter. Therefore, it is quite possible that the loan application will be rejected without giving reasons.

If the facts are clear, well-structured and manageable, online loans offer significantly better conditions due to the possibility of comparison. Online providers are under constant competitive pressure under a particular competitive pressure. Due to the lack of personal commitment, customers have fewer loyalties and, in the case of lower interest rates, simply switch providers.

Particularly in the area of ​​online credit providers, the competitive pressure has a positive effect on the customer. The lenders are forced to bow to the prices of the competition, since there is no close customer loyalty. Comparative portals also increase this pressure and offer the borrower a preselection of the best loan terms.

2. The advantages of a branch

2. The advantages of a branch

For many borrowers, however, it is still important to seek personal contact and to take out a loan with local banks. This can have different reasons. For some it will certainly be the fear of the internet. Those who do not deal with it day in, day out. They do not trust the medium because they are unfamiliar with it, and the spying reports of the past have increased distrust.

Uploading data about your own creditworthiness in a form is very special and then entrusting your own income to a computer is out of the question for many Germans. You do not even tell that to your closest friends, let alone a stranger. So it’s not surprising that despite the greater comparability of online credit providers, many borrowers still go to their house bank. They already know the income anyway!

Of course, there will also be people who have been doing good business with their house bank for years and can therefore bet on better terms. In addition, they also appreciate the service. Thus, the annual consultation at the house bank always brings a few new information to light days, which can help one in everyday life.

Another advantage is that it is better to communicate face to face with a person in unclear situations that require creativity, dedication, and a degree of flexibility. Problems are often solved without words, as the other person can read the inner attitude based on facial expressions and posture. This happens unconsciously in the vast majority of cases, but rather leads to more success in difficult circumstances than a conversation on the phone. There are reasons why most verbal riots take place over the phone. It is difficult to read and interpret between the lines here.

3. Case studies

3. Case studies

The situation determines whether an online loan or a credit at the house bank for a rational decision maker are the better alternative. By way of example, two cases are described below, which are intended to provide insight.

When is an online loan the better alternative?

The requirements : The borrower is creditworthy, over 18 years old, has his permanent residence in Germany, a regular income and no negative Schufa entries.
The situation : A loan of 20,000 euros is needed. The borrower can accept a monthly rate of 200-300 euros.

The cheapest credit providers can be selected on the comparison portals. Now, however, should still own research done. For this, the homepages of the providers must first be examined. Everyone values ​​other things. It follows the input of the data in the loan calculator of the banks.

Here is an example of the CreditPlus bank:

The credit calculator of CreditPlus

Here would be a term of 84 months, so seven years in question. These conditions can now be compared with several credit providers.

This is followed by the loan request from the best credit providers. There should always be several inquiries, as it can well be that on the one hand the conditions change due to the situation or a loan is rejected. The information provided in the credit inquiry must be true.

When registering always stay with the truth!

When is a branch loan the better alternative?

The requirements : The borrower is creditworthy, over 18 years old, has his permanent residence in Germany, is self-employed and has no negative Schufa entries.

The situation : A loan of 20,000 euros is needed. The borrower is expected to pay between 200 and 300 euros a month.

Here is the situation that a self-employed borrower can usually not say with certainty whether he can really serve for a period of seven years, a installment of this amount. There would be more flexible credit terms. In addition, it must talk about any collateral or guarantor. Especially here it is also important to be able to get a picture of the other person.

The lender will look at in addition to the rational circumstances and the seriousness of the borrower. It may also be possible to combine with private lenders so that the risk is shared. But for a lively exchange of information between the parties involved is necessary, which is difficult to reach via a call center or a live chat.

4. The conclusion: the circumstances determine the choice

As the examples above show, here is no general recommendation regarding online credit or branch. Both forms have their advantages and disadvantages. Online credit providers are not allowed to be prejudged here. They are also concerned about the satisfaction of their customers, but on a different level.

Online loans have the distinct advantage of making them more comparable. The loan calculators offered provide a quick overview of the costs to be compared. There is no direct contact to the customer advisor here.

In the case of branch loans, comparisons are difficult, which requires trust in his bank adviser. Nevertheless, it is also possible here to bring in several offers, it is just connected with more effort. The better customer service costs but also correspondingly more interest in direct comparison to online credit providers.