What is needed to take out a loan online and in cash.

The credit system is quite convenient in many European countries. However, many clients still do not know what is needed to take out a loan and how to prepare for it. Moreover, such an option is available online (both for a housing loan and a phone loan). 

When understanding what is needed for a housing loan or what is needed for a cash loan, one should realize that preparing for such an obligation starts long before signing the contract. After all, it first and foremost concerns credit rating and income (regular). 

What is needed to take out a loan? 

In Ukraine, in 2024, obtaining a large loan, including cash, is a real quest. Besides the ongoing war in the country, there is an economic crisis in Europe overall. 

In 2024, Ukrainian banks and financial institutions offer a wide range of loan services both in online format and in cash. The conditions for online loans are also frequently updated. Overall, this process is complicated, but still accessible. 

These options are convenient for different categories of clients: from those who prefer to minimize contact with banks to those who still prefer personal communication with a loan specialist.

Features of online lending 

Online lending differs little from traditional lending. The conditions and requirements are practically the same. The main difference is in how the procedure takes place. 

In Ukraine, in 2024, obtaining a loan online can literally take a few minutes by filling out a simple questionnaire on the bank’s or microfinance organization (MFO) website. The latter option has its own specifics. 

When it comes to requirements for clients, they are: 

1. An online loan can be obtained from the age of 18, however, most banks and MFOs provide loans from the age of 21. The upper age limit usually ranges from 65 to 70 years.

2. To obtain a loan, it is necessary to provide scanned copies or photos of these documents.

3. Online loans are mostly transferred to a card, so having an active card from a Ukrainian bank is mandatory.

4. Contact details are also needed to confirm identity and to communicate with the lender.

A few words should be said about the credit history. It is an important factor that influences the possibility of loan approval. Banks most often check data through the Ukrainian Bureau of Credit Histories (UBKI). This factor is one of the most significant. 

In general, the popularity of such lending is explained by all the advantages it provides. First of all, it is the speed of obtaining loans. The average Time from application submission to receiving the money is 10-30 minutes. This includes all verifications.

Also, online loans are given without additional documents. That is, the minimum that needs to be submitted to receive approval or a rejection. Another advantage is the accessibility of such a procedure. An online application can be submitted at any time of day and any day of the week.

However, it should be noted that online loans often have higher interest rates than traditional loans, especially when it comes to short-term microloans.

Features of cash loans 

A cash loan is a more traditional way to obtain money. That is a classic loan that can be obtained at a bank. In 2024, this type of lending remains popular among Ukrainians who prefer “live” cash in hand. However, due to the war, there are many complexities in this process as well.

Such a loan can be obtained if a number of requirements are met: 

1. A standard package of documents for loan processing (passport and identification code). 

2. A certificate of income. Many banks require confirmation of solvency for the past 6 months. However, there are lending organizations that offer loans without certificates but raise the interest rate.

3. As with online loans, having a positive credit history increases the chances of obtaining a loan under favorable conditions.

The larger the loan the client wants to take, the higher the likelihood that a guarantor will be required. In some cases, securing a large amount may require guarantors or collateral property.

This kind of loan is significantly more difficult to obtain, but it usually has a more favorable rate (interest). How to obtain such a loan at a bank (general scheme): 

1. First, you need to choose a bank. Different banks offer different lending conditions. 

1. The client needs to come to the bank branch and fill out a questionnaire stating personal details, financial condition, and loan amount.

2. Unlike online loans, the review of the cash loan application can take from one to three business days.

If the client receives a positive response, they can almost immediately receive cash.