Frequently asked questions

Taking a loan is not an easy decision. Before you do so, there are many things you need to inform yourself about. We have put together some commonly asked questions to give you more information about borrowing, online loans and loan comparison.

Questions to answer before taking a loan

Have I explored other less expensive sources of funds before considering a loan?

When you need funding, you want to find it in the most affordable way possible, so it is important to consider whether personal loans are indeed the cheapest way to borrow that money. There are few professional financing options and lending sources to consider depending on two major factors:

  • How much money do you need?
  • What do you need the money for?

As a matter of fact, personal loans usually have much lower interest rates than, for example, credit cards, a hugely popular financing product, and they are flexible: you can borrow the amount you need and use it however you want. That being said, there are specific loans, such as auto loans or student loans, that are tailored-fit for certain expenditures and therefore more affordable even than a standard personal loan, especially if you are able to find a promotional rate.

Make sure you consider other questions as well, such as: will you be able to pay back the loan? How long will that take? What are the terms of the loan you are interested in? You are going into debt when you take out a loan, so you need to be responsible about it.

Do I qualify for a loan?

Since the requirements to qualify for a loan may be different depending on the lender or the bank, the best way to know if you qualify for a loan is to apply for it. That being said, there are some common factors that are needed to achieve a successful application. Your credit score and your credit report are among the most important: history matters when applying for a new loan, whether you have debt or whether you pay your bills on time, etc. At the same time, having a stable, steady income is a decisive factor as well.

In summary, most lenders will take a good look at two factors when they receive your application for an unsecured personal loan:

  • Your credit history
  • Your ability to repay the loan

Generally speaking, you don’t need to provide any collateral, such as a car or your house to back-up your loan, and you should not need a cosigner (unless adding a person will greatly enhance your chances of getting approved).

How much do I need to borrow?

Plainly, you need to borrow just enough money to cover for the reason you are borrowing such money. Not more, not less. Knowing the purpose of your funding will help you assess exactly what you need to accomplish such project, to take care of whatever expense or to solve any problem.

It’s important to understand that whatever money you borrow, you have to pay back with interest. Extra borrowing can lead to higher monthly payments for the whole duration of the loan. That is why being realistic about your salary as well as your current expenses. Ideally, loans payments should be below a third of your net monthly income.

How long will I be paying off this loan?

A loan is paid by making regular monthly payments towards the lender until, eventually, the loan is paid off. Unsecured personal loans that are offered online usually provide a calculator to help determine how long you will need to make these payments until you are debt-free.

Most lenders allow you to choose how long you would like to take to repay the loan, within a previously established timeframe (e.g. between 1 and 6 months, or between 6 months and 5 years). That way, after selecting the amount needed, you will immediately find out the monthly payment amount. The length of a loan will typically affect the amount you are being charged in interest, so we recommend you to find the right balance for you in terms of length and amount.

Can I afford the loan with this monthly payment? Will I be able to pay back the loan?

Once you have found the loan that best suits your needs, you can usually adjust how long you need to pay it back fully (by monthly installments). That will, in turn, adjust the interest charged and the overall price you’ll pay for the loan. Your monthly installment is the result of adding the loan amount, the interest rate and the length of the loan.

When applying for a loan, the required monthly payments are the biggest concern. How affordable is it, considering your income and all your other expenses? That being the case, our advice is to set-up a monthly installment amount that you feel comfortable you can pay. One way to reduce the monthly payments is to stretch the loan over a longer term, even if that means you’ll pay more in interest. On the other side, being too confident and setting up a higher payment might be riskier, should something happen along the way. If you want to finish paying your loan earlier than the agreed term, you can always pay off your debt early (assuming there’s no prepayment penalty).

Will borrowing money help me achieve my goals? Do I need this money?

Nowadays, almost everyone needs to borrow money sooner or later. Whether it’s for college, to start a business, to move or to travel, there are plenty of situations in life where you might need money quickly, so it’s tempting to take a loan.

An unsecured personal loan is easy to obtain, with an online-based application process and little to no-hassle, and the money finds its way to your account within a very small period of time. Those are the reasons that make this financing avenue very interesting if you need money fast or you’d rather bypass the usually long application from your bank. Consider it a shortcut, but at a price.

You are the only one that can assess whether you need this money right now or you can make other adjustments in your finances or seek an alternative source. Before applying for a loan, we recommend you to write down your income and expenses, which may provide some interesting insights on how to save some money every month and to better manage your personal finances.

Should I take secured or unsecured loan? Should I have a cosigner?

An unsecured loan is money you borrow from a lender with no assets and you agree to make regular payments until it’s paid in full. On the opposite, a secured loan is secured against an asset you own, usually your car or your home.

The interest rates are lower for secured loans as compared to unsecured loans, but secured loans are a much riskier option: the money is secured against your home, so if you can’t pay back the loan, the lender could make you sell your home to pay off your debt. Unsecured loans have higher interest rates. In that case, if you don’t make the payments properly, you might incur on additional charges and this will affect your credit rating or history. Some lenders might also take you to court or report you.

Having a cosigner can enhance your chances of a successful loan application, because it can help you approved for a loan you otherwise wouldn’t qualify for, but the cosigner should be aware that they are promising to pay off your debt if you stop making payments.

What interest rate will I pay?

Interest rates are variable for personal loans. If you have a good credit history, you may be able to get a personal loan with a relatively low interest rate, with an average that could fall between 7% to 15% depending on the amount borrowed and the length of the loan.

You will not be able to avoid paying interest on your loan, but you can minimize the interest you will pay by maintaining a good payment record, comparing around in Finbino’s sites for the lowest rates and paying your loan as fast as you can.

Let’s see an example: a $3000 loan at 7% for 2 years. You’ll pay $134.32 as a monthly installment for those two years, and total interest paid will be $223.63.

Faster microloans with rather short payback times are usually more expensive, yet there are many promotions with a 0% interest rate that you might be able to find nowadays.

Do I need to pay any fees?

There is a growing tendency for lenders (banks and private lenders) not to charge fees, or to minimize the amount and variety of fees that you will have to pay when borrowing money. Generally speaking, online personal loans do not carry many added fees, thanks to their automated process that does not require any in-person consultation.

The most common fees are:

  • Application fees: not so common. Some lenders charge an application fee just to process the application and approve it.
  • Origination fees: they are upfront fees charged by a lender for setting-up a new loan. Origination fees are usually quoted as a percentage of the loan (typically, between 0.2% and 1%).
  • Late fees: they are fees that are charged when the borrower misses a payment.
  • Closing fees: they are charged when the transaction is completed.
  • Prepayment fees: lastly, these fees may be applied when the borrower tries to pay off his loan earlier, as if they were a prepayment penalty.

What happens if I can’t pay the loan off?

Depending on the lender, any delay or missed payment of a loan installment can have several consequences, mostly economic, but also personal. Let’s see the most frequent:

  • The lender may apply a late fee, a small lump-sum amount, as a consequence (could be between $10 and $30)
  • The lender may apply an additional penalty as an interest rate for late payment, which usually can be between 1% and 1.5% daily until payment is made.
  • If payment is not made within a certain period of time, the lender could take you to court to seize your assets and sue you.
  • Lastly, your credit rating will be affected and the lender may report you to whatever delinquent files your country may have, where your name may remain until your debt is paid off. This will negatively affect your capacity to apply for any new loans anywhere.

If I die, how will the loan be repaid?

As with any assets you own, any debts left behind when you die will be left to your heirs. This is the reason why some people buy life insurance, to help dealing with any debt and final expenses related to pending loans.

Generally, your debts become the responsibility of your estate after you pass. Then, there will be a process to pay your bills, pay off your debts and distributing whatever’s left from your assets and rights. The person responsible for dealing with your will is the one who will use your assets to pay off your debts. This includes money in the bank and also real estate, funds and shares. If there isn’t enough money to cover your debts, then those will have to be written off as no one will be responsible to pay them off.

Online loans

Online loans or bank loans?

Nowadays it is very easy to be overwhelmed with so many lenders offering loans, that is the main reason for our existence at Finbino. Let’s start by examining both these products.

Traditional bank loans are those offered by your usual bank, at your nearest branch or sometimes through online banking or app, while online loans are products offered by new private financial lenders of all kinds through their website.

Each product has its advantages and disadvantages. Online loans are very fast and can be requested 24/7 without even leaving home and with zero paperwork, but they can be a bit daunting and confusing as there are plenty of lenders and options available. On the other hand, banks usually involve going to their branch, signing papers and perhaps paying some application fees.

Each product has its advantages and disadvantages. Online loans are very fast and can be requested 24/7 without even leaving home and with zero paperwork, but they can be a bit daunting and confusing as there are plenty of lenders and options available. On the other hand, banks usually involve going to their branch, signing papers and perhaps paying some application fees.

Are online loans safe?

All online loans are regulated by most countries’ legislators, particularly in Europe, North America and South America, and Asia. That means you are protected when you apply for an online loan, on top of the usual safeguards for consumers as well as personal data regulations.

That being said, it is important to verify that the lender displays all critical loan-related information transparently on their website. It is also recommended to find out whether the lender has a good customer service in place, should some problem arise. These factors are layers of protection for you as a customer. Lastly, check comments and reviews by other users, read analysis and search the internet for any complaints.

What is the difference between interest rate and APR?

The interest rate is the cost of borrowing money (also called ‘the principal’), while APR includes all other costs associated with borrowing such money. All lenders are required to display, on every consumer loan agreement, both the APR and the nominal interest rate, to ensure it is accurate and transparent for the consumer. That way, a level playing field is established for lenders and borrowers can easily compare and determine the true cost of any given loan.

The APR is, therefore, a more effective rate than the nominal or advertised interest rate when comparing loans. The APR includes broker fees and all costs involved in procuring the loan, hence it should always be equal or higher than the nominal rate. Similarly, for an online loan to be considered “free”, not only the interest rate (advertised) should be 0% but also the APR should be 0%.

If two lenders are offering you the same nominal rate and monthly payments but display different APRs, the lender with the lowest APR requires less fees and it is a better deal for you.

How to speed up the process of applying for a loan online?

To apply for an online loan, you must simply fill-up an online form. To expedite the process, we recommend you to input truthful information only. If you have your ID card and your banking information on hand, this will not take you more than few minutes. During the application process, the lender might ask you about your monthly income, your general expenses, your employment status and your marital status.

Kindly note that everything you input on the form is, and remains, confidential. It is equally important to have your own email and mobile phone, as the lender will require such information in order to get in touch with you and let you know the outcome of your application.

How soon can I get my money after my loan is approved?

Online loans are very fast. After filling-up the form, which could only take a few minutes, the lender’s automated processing systems will take care of your application, evaluate it, and send you a response within minutes.

If your application is successful, you might need to agree on the final terms and sign-up a contract (online), after which the lender will transfer the money to your bank account immediately. Once the transfer is posted, it will take some time to find its way to your account. This depends mostly on your bank. If they match, you could have the money the very same day or the next working day. In some cases, however, it could take up to 24 or 48 hours to appear in your bank statement. Higher amounts of money usually take longer to arrive.

Should I consider loan consolidation?

Loan consolidation is an option you can rely on when you wish to consolidate debt and repay multiple debts with one monthly payment, that is, by applying for a new single personal loan. This is an interesting way to simplify the debt repayment process and can even save money, if you compare interest rates and research the best alternative for you.

You can use a personal loan for a wide range of purposes, including loan consolidation. That way, you’ll know your repayment timeline upfront, and depending on the amount you need, you could possibly do with an unsecured personal loan, meaning you won’t need to secure your loan with any asset.

Loan consolidation could reduce your interest rate and boost your credit history as it will help you avoid any late payments. However, there is a chance you will end up paying more interest, if you stretch the repayment period for too long. Loan consolidation carries a risk of you ending up deeper in debt, so it’s best if you can get a new loan with favorable terms and lower interest rates than you are currently paying.

Can I have multiple payday loans at a time? I already have a loan; can I get another?

The short answer is yes, you can have multiple loans of any kind at the same time. Even though not all lenders allow you to have two loans at the same time, you are free to find different lenders and request a new loan, be that a payday loan or any other kind of personal loan, consumer loan, student loan, auto loan or even mortgage.

The framework to consider when applying for loans is that it is not safe to borrow more than one third of your monthly net income. Having several ongoing loans may be riskier for you, should something unexpected happen to your regular income. It’s also more complicated to handle, as you will have to remember payment dates and/or payment methods to keep up with your bills and avoid late fees every month.

At Finbino we advise you to be responsible and to look through your personal finances before applying for a loan or increasing your debt.

What can I do if I have a problem with my loan or with my lender?

If you experience any problem with your loan, the first step you need to take is to contact the lender through its customer service channels. Generally, lenders have an available phone number (during office hours) and an email, and some of them might even have a live chat feature. Regardless of the problem you’ve had, whether it’s a delay or changes you need, it is key to let your lender know so you can find a satisfactory solution as fast as possible. The Finbino team recommends you to be proactive at all times when any problem arises.

You can use a personal loan for a wide range of purposes, including loan consolidation. That way, you’ll know your repayment timeline upfront, and depending on the amount you need, you could possibly do with an unsecured personal loan, meaning you won’t need to secure your loan with any asset.

Now, if you experience a problem with your lender, which is far less frequent but could happen, and you have tried contacting them about it, you might need to resort to customer protection channels, financial overseers or associations, to report what is going on. In some cases, serious problems could require you to seek legal advice and/or consult with an expert lawyer.

Comparing loans on Finbino

How does Finbino work?

Finbino is a free and independent comparator that helps you quickly grasp the most advantageous options to borrow money and to make the best possible decision. Finbino aims to provide all the information you need to effectively compare loans.

Finbino works drawing from our more than six years of experience by compiling loans and lenders from 7 countries around the world to save you time and money by filtering across the currently overwhelming array of offers, websites and companies.

Can I apply for a loan on the Finbino website?

Finbino is not a loan provider nor an intermediary, so you cannot apply for a loan directly here. That being said, you can use our site to find the best lenders and directly apply for a loan on their website.

If you have found an offer that sounds reasonable to you, click on the “Apply for a loan” button, and you will be then redirected to the lender’s official website. There, you just need to confirm the loan conditions that you were looking for.

After that, you can apply for a loan by completing their form and submitting it online. Online lenders work with paperless, hassle-free processes that make it feel like a breeze: in most cases, you’ll receive more information from the lender within minutes of submitting your application.

Can I trust lenders presented on the Finbino website?

Finbino collaborates with recognized and reliable loan providers only to ensure information is accurately displayed for you. That way, you can be sure that you are applying for a loan that is verified, updated and with the best possible repayment terms.

That means that every lender that you see on the Finbino website has been verified and vetted by our team, and we regularly update their information to keep up with changes, terms and promotions available. We are proud to affirm you can trust any lender that you find in any of our Finbino country branches sites, as more than 100,000 visitors trust international and local loan comparators operated by Hyperia s.r.o. ( a company also responsible for the Finbino project) every month to find their loans.

How can I best compare offers from multiple lenders?

In a nutshell, Finbino makes it easier to decide which loan to take. Here you will find the newest offers, all compiled in a list that includes banks and non-banking lenders, classified by the amount of money, the repayment terms and their interest rate (nominal & APR). You can filter according to your preferences and then select your loan from the results.

Once you have found the loan you are interested in, simply click on the button to request it. You will be redirected to the website of the lender, where you can fill out the form and submit your application easily.

Finbino allows you to compare loans quickly and without registering, among the most up-to-date products on the market and the latest offers. Our service is 100% online, open and always free for you.

Are there any fees related to using Finbino services?

None! Finbino is a free independent comparator for you. You don’t need to worry about hidden charges or additional expenses when comparing loans or applying for a loan that you have found through this website. The bottom line is: there are no related fees to using Finbino.

The Finbino comparator is financed through affiliate links, which means that Finbino receives a commission from loan providers and partners. This does not raise the price of the loan for you nor implies any added fees to you.