Online loan with no processing fee.
If you open the newspaper or watch the sports on TV, you will find a variety of loans from a wide range of providers today. It is often not easy to find the most attractive loan for your situation from this amount. Many borrowers definitely want an online loan with no processing fee to avoid additional, unnecessary costs.
Purpose of the processing fee
A processing fee is charged by many banks for processing the loan request and managing the current loan. Many banks that offer loans over the Internet or work as a direct bank and do not need a branch network work with leaner structures and therefore significantly cheaper. This cost advantage is then passed on to the customer, for example by B. is completely waived of a processing fee.
As a rule, this fee is one to three percent – with a loan amount of 20,000 USD, up to 600 USD in processing fee can be saved if the loan is taken out online. It should also be noted that the processing fee is usually added to the loan amount, so that interest is then also charged for this fee.
Also pay attention to the APR
Despite a cheap online loan without a processing fee, you should always compare the entire offer. Particular attention should be paid to the effective annual interest rate – the processing fee is always included in the effective interest rate, so that the loans are directly comparable with one another. Although the processing fees generally make a loan more expensive, you should not be blinded by an online loan without a processing fee, but instead with a higher interest rate. In the end, the total cost of the loan is decisive.
Find an online loan with no processing fee
The internet offers many opportunities for online loan comparison. These loan comparisons make it possible to take a close look at the different interest rates of banks and other loan providers. Of course, the credit conditions should also be compared with each other to avoid later unpleasant surprises. If you carefully compare all conditions, you can find the ideal online loan for your situation without a processing fee and usually have the required loan amount in your account within a few days.