Online cash loan – Consumer rights

For a long time now, the popularity of loans and loans granted online has been increasing. It can be assumed that this trend will continue also in the coming years.

This is favored by the continuous increase in the popularity of the Internet and an increasing number of slightly older Internet users. Banks can be satisfied with the “internalization” of their credit offer, which allows them to limit employment in branches.

The question arises as to whether loans and bank loans are taken online provide some additional benefits to their owners (other than convenience and the ability to quickly receive funds). Sean Coles comparison experts looked at this issue in legal and financial terms.

You can withdraw from the online loan agreement for 14 days …


Regulations related to online loans and credits can be found in the Act of May 12, 2011, on consumer credit (Journal of Laws of 2011, No. 126, item 715). It is worth remembering that this act, apart from loans granted by banks and credit unions, also applies to the offer of loan companies.

The aforementioned Act contains provisions regarding credit agreements concluded at a distance (e.g. via the Internet or telephone).

Article 58 of the Consumer Credit Act indicates that the same rules apply to online and telephone contracts as to traditional and credit contracts (e.g. at a bank, credit unions or square loan agent).

The withdrawal period of 14 days is provided

This situation differentiates consumer loans and loans from insurance. It is worth knowing that the conclusion of an insurance contract online gives the customer a much wider possibility of canceling the policy (for the first 30 days).

In the case of consumer loans and online loans, a withdrawal period of 14 days is provided, which is much shorter than for policies purchased online.

However, it is worth paying attention to two principles that improve the situation of the online borrower. First, to comply with the fourteen-day withdrawal period (calculated from the date of the contract), it is sufficient to send an appropriate statement by post to the lender/creditor.

Secondly, the regulations indicate that the lack of appropriate elements of the loan or loan agreement results in the extension of the withdrawal period. This deadline is calculated only from the date of receipt of the amended contract by the consumer and is still 14 days.

It is worth remembering that within fourteen days of withdrawal from the contract, the consumer has the right to resign from credit or loan without giving a reason and incurring other costs than the interest due for the period of the actual use of the measure. in.

Banks, credit unions or loan companies may independently enter longer withdrawal periods from a loan/credit agreement (including online ones).

In practice, there have already been such promotions related to the extension of the deadline, e.g. to 21 days. They can be used because each action for the benefit of the consumer is not prohibited by GFIC and applicable regulations.

Sometimes online credit can be more attractive


National banks treat the subject of loans and loans granted online in a differentiated manner. Some such institutions have not yet decided to completely transfer the credit procedure to the Internet.

In turn, other banks intensively promote the sale of credit products via the Internet (as an alternative to visiting a branch). In the case of institutions belonging to the latter group, sometimes you can expect preferential conditions for borrowing funds over the Internet.

The above table presents three proposals for cash loans and loans, which are characterized by special conditions for Internet users. We are talking about a Loan for Friday for any purpose offered by GFIC and the popular cash loan Good Finance.

Three proposals for cash loans and loans


It seems that the first of these banks to offer the greatest financial preferences for Internet users. It is worth knowing that a Loan for a Friday with a value of up to USD 20,000 will have a zero preparation commission if it is incurred online.

Such an attractive promotion is provided for people who as of 31 August 2018 did not have loans or consolidation loans at Good Finance. Each holder of a Friday loan can count on a low-interest rate of 5.00%.

A special internet offer will also be prepared by Good Finance. The lion bank offers a preparatory commission reduced by one percentage point to those who are its regular customers or have submitted an online loan application.

GFIC also has an interesting offer for Internet users. Special conditions for an online loan are provided for new customers of this bank. This Good Finance loan in online mode provides up to 3 months of credit vacation and can be paid on the day of applying online.

14000 USD loan can be taken out with favorable conditions.

A loan over 140,000 USD is actually no longer a small loan. Nevertheless, the 14000 USD loan can be taken out with favorable conditions. There are banks that charge interest of between 4.29% and 10.99% depending on their creditworthiness with a term of 48 months. Many now think that these are lure offers, but far from it, over two thirds of all customers receive an actual interest rate of 4.29% on average.

The rate then shows up at 321.65 USD. The total loan amount is 15,439 USD. Although online banks have better conditions in most cases, they lag a bit behind at these interest rates. An interest rate for the 14,000 USD loan is shown at an interest rate of 6.5% for the same loan amount from an online provider. The rate is higher, which is USD 330.80 and the total loan amount is increased to USD 15,878.87.

The 14,000 USD loan – the prospects

The 14,000 USD loan - the prospects

With regard to interest rates, the customer should know that most banks calculate credit ratings. If a customer receives a loan with high interest rates, the bank considers the customer to have a poorer credit rating. Different ratings can be found in the credit check from bank to bank. Of course, the interest rate is favorable if the customer has a sufficiently high income. If you have a bad Credit Bureau and maybe a temporary employment contract, then the cards are not so good. Even those who are still in the trial period can assume the same situation.

The amount of interest on a 14,000 USD loan also depends on the loan term. You can usually find the low interest rate on loans with a short term. A long loan term increases the risk for the bank that a loan default could occur. Most loans today are standardized, ie they are subject to automatic lending, which shows no scope for the customer.

The requirements are strictly regulated, as already mentioned above, this includes a sufficiently high income, a clean school and a permanent position. In addition, the customer must be of legal age and reside in Germany. The amount of income must be above the garnishment exemption limit. A single person is included with 1,100 USD net. Every additional person who lives in the household moves the limit upwards. Four people must have at least 1,800 net.

The 14000 USD loan – the conditions

The 14000 USD loan - the conditions

The 14,000 USD loan need not have a specific purpose, it can be used for a wide variety of projects. For example, a small loan is suitable for balancing the overdraft facility. However, one should mention that the overdraft facility should only be used for a short time. It is one of the most expensive loans ever. An installment loan on the above conditions is much cheaper, the overdraft facility has a double-digit interest rate, often up to 15%.

A small loan can also be used to finance other projects such as new furniture, a car or a vacation trip. Since the loans are not earmarked, they can be used freely. With a car loan, for example, the customer should know that there are special car loans, which in turn have a low interest rate, because the bank has not only the income but also the car as security.

Anyone who has a negative Credit Bureau is excluded from conventional lending. For these customers, with sufficient creditworthiness, the Credit Bureau-free loans can bring the solution. However, no favorable interest is then calculated, and this interest rate is also in the double-digit range. Since this type of loan is mostly processed through a credit agency, the agency commission is also added.

The permanent position must of course also be available and has been for at least six months. The employment contract must not be limited and there must be no trial period.
Of course, a 14,000 USD loan can also be taken out for debt restructuring. In this way, the customer can summarize all of his liabilities in one loan and will only have one creditor in the future.

However, in the event of early redemption of loans, it should be noted that banks can calculate a prepayment penalty. In the past, they were so high that debt restructuring no longer paid off. But after a court ruling, banks are only allowed to charge up to 1% of the remaining loan amount as their default.

The credit comparison

The credit comparison

Before making a loan request, the customer should know whether he can afford a loan at all. If you look at the rates of around 330 USD, that’s not a cardboard handle that has to be applied monthly. Here it is possible to find out by drawing up an income / expenditure plan. If there is a plus, the 14000 USD loan could be applied for.

Of course, the customer has to prove a corresponding creditworthiness in the form of an acceptable income. The customer should know that banks want to be sure that the borrower can also repay the 14,000 USD loan. Those with a low income have bad credit cards. Here there would be the possibility to look for a bank that has a high acceptance rate. In addition, the lack of creditworthiness could also be compensated for with a second borrower.

If you consider that with a 14,000 USD loan with a term of 72 months there is a rate difference of 243.46 USD and 256.93 USD, which is an interest rate of 8% to 10%, it is definitely worth a loan Conduct comparison.

The customer can then choose a cheap provider and submit his loan application directly via the comparison. But it should be noted here that the interest shown is not available for every customer. Here too, the interest rate is based on income and general creditworthiness. If the customer has a good credit rating, he will also receive a favorable interest rate and vice versa.

The 14,000 USD loan can be taken out at the house bank or at an online bank. Experience has shown that online banks show better conditions. The customer should not only pay attention to the interest rate, but also look for free special repayments. One or two rate stops per year should also be included in the loan agreement.

Rate stops because a financial bottleneck can always appear during the credit period, which may then be compensated for with two rate stops.

Want to Borrow Money? Let’s Check These Best Recommendations

Borrowing money is practically easy and easy. Depending on the conditions imposed by the place you borrow. For example, your loan application will be approved if you have collateral, have a credit card, or have a really good credit history.

Here are some recommendations for where to borrow money that you can try. Each has advantages and disadvantages. Both in terms of the loan itself and the criteria that you must meet.

Borrow Money from Friends or Relatives

Borrow Money from Friends or Relatives

The easiest way to borrow money is to borrow from your closest friends or relatives. You do not have to provide guarantees or certain document requirements, such as when borrowing from a bank. Depending on the agreement between you and friends or relatives.

However, this method sometimes risks “disrupting” personal relationships. Especially if you are late in paying off loans. Or, sometimes cause certain gossip.

In addition, of course, the number of loans you can get is fairly limited. Because the number depends on the ability or desire of your friends or relatives.

Make a Loan to the Bank

Make a Loan to the Bank

Provided that you meet the criteria and conditions requested by the bank, your loan will be approved. Borrowing from banks also provides more benefits, namely greater loan amounts with relatively low-interest rates. Here are some types of loans to banks.

  • KTA (Unsecured Loans)

KTA is a loan product from a bank that you can apply for without needing to provide collateral. The interest rate for this loan is around 0.6 percent to 1.9 percent with a tenor of five years.

The requirements for getting a loan are Indonesian citizens, have a steady income and have a good credit history.

  • Multipurpose Credit

If you do have assets to pledge, there is no harm in trying multipurpose loans when you need to borrow money. Because multipurpose loans have a number of advantages compared to KTA.

Multipurpose loans apply a much lighter interest rate, which is around 9 percent per year. Then, the number of loans granted is far greater than the KTA. Plus, the tenor can be longer.

To get a loan from this bank loan product, of course, you need to attach the terms of the asset documents.

  • KUR (People’s Business Credit)

If your goal is to borrow money for business, then KUR can be the best alternative. This people’s business credit loan product is intended for those of you who already have a business. The interest is also much lighter, which is 7 percent per year.

Nonbank Loan Institutions


Nonbank financial institutions are institutions that are not banks, but provide a variety of financial needs. For example, FIF ( Federal International Finance ).

To get a loan of money through these institutions, you must provide collateral. Usually in the form of BPKB motorbikes, land certificates, and others. The interest rates applied are around 0.25 percent to 0.5 percent per month.


Pegadaian is a state-owned company that is engaged in financing and saving gold. For financing, as the name suggests, you need to mortgage certain assets.

What makes it different from bank loans or non-bank lending institutions is that assets that can be guaranteed in pawnshops are quite varied, for example, cellphones, jewelry, or other valuable objects. Then, the pawnshop will estimate the value of the item and determine the amount of the loan based on the value of the item.

For information, the interest applied depends on the term of your loan repayment. Typically, the interest rates applied start from 0.75 percent.

Cash Advance Credit Cards

Cash Advance Credit Cards

If you have a credit card and need a fairly large loan, a credit card can actually be an alternative. You don’t need to submit an application and wait for approval. Just enter the credit card into the ATM machine and select the Cash Advance menu.

As long as you pay on time in the next month, no interest will be charged on your loan. All you need to pay for a cash advance is usually only a cash withdrawal fee of around 4 percent of the total withdrawal of funds or a minimum of USD 100,000. It depends on your credit card issuing bank.

So, for example, you withdraw cash via a credit card of USD. 2 million, then you will be charged a fee of USD. 60 thousand. These fees will appear on your credit card bills.

Those are some of the places you can try when you need to borrow money. Please choose based on the loan amount you need, the term of repayment, and the suitable interest.

Do not forget, just submit a loan for the amount of money as needed and not burdensome yourself when you have to pay it off later. Make a budget plan to ensure your finances stay safe.