Friday, March 26, 2021 – 12:06
A customer receiving notice from their bank that a loan has been pre-granted has been common in recent times. However, the arrival of the Covid and its consequences have caused these offers to drop and are presented only to some clients.
Through online banking, by SMS or even by means of a message at the ATM, the bank advises its customers that they have up to 10,000 euros that they can obtain on the same day without more paperwork than digitally signing the contract. In a single click and without having to go to an office you can get pre-granted loans.
With the data that banks have on their clients, they analyze their profiles and decide whether to approve a loan with a maximum amount and a specific interest. Is about personalized offers adapted to the risk that each bank of its clients appreciates and the pandemic has caused these offers to be reduced by 30 percentage points, explains the credit comparator HelpMyCash.com according to an analysis carried out in February 2021.
Less quantity and for ‘premium’ customers
Economic uncertainty, the worst working conditions for clients (ERTE, businesses closed, unemployment …) and the margins required of banks are some of the reasons that have reduced the supply of this type of financing . Specifically, it has gone from 90% of customers with a pre-granted approved in 2018, to 60% of users with an offer in February 2021, according to HelpMyCash’s market analysis.
There are fewer proposals and they are focused on more premium clients. Not only in those who have more money, but more seniority in the entity, with jobs that have not been negatively affected by Covid-19, that do not have other current credits or whose income-expense ratio is healthy.
According to the analysis of the comparator, these loans offer amounts that can range from 500 to 90,000 euros with a average cost of 9.8% APR, more expensive than the current average for consumer loans, which stand at 7.52% APR, according to the Bank of Spain. Although from HelpMyCash.com they clarify that the offer can change enormously according to the client’s profile. The same bank can offer 5,000 euros at 10% to one user and 50,000 euros at 5% to another.
In any case, if the pre-granted is not a good offer, it is not necessary to stay with the proposal of the own bank, since currently it is possible to find several offers of cheap loans in various entities that can be contracted, even without changing banks and requiring little binding.
Does this decrease in supply affect customers?
Due to the reduced supply, many will not be able to get immediate financing. Nevertheless, this does not mean that they cannotget a credit with your bank.
The economic uncertainty of the current moment and the changing situation of the working conditions of the clients due to the restrictions caused by the pandemic are two of the main reasons for the drop in supply. Faced with this situation, banks need to do a more detailed and current analysis of each client before granting them financing. Therefore, any client can continue requesting a consumer credit with their bank, even if they do not have an approved pre-granted, since that does not imply that their request is automatically rejected.
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Source site www.elmundo.es