The personal loan is a financial product that has existed in Spain for centuries. Practically, since the Middle Ages, we know this kind of loan.
Already in the last century, the loans were taking characteristics very similar to the current ones. And, regarding the product that occupies us in this text, the last years have been key. Next, we will tell you the reason for the evolution of this financial product. In this way, you will be able to understand the boom that has played a leading role in recent times.
This kind of loan has always been in great demand in our country, but increasingly independent lifestyles have led to more applications. We must bear in mind that, until the end of the 20th century, banks had a practical monopoly on the management of these loans. Those who wanted to avoid some of their conditions had to resort to the clandestine loan market, which also continued to work. But, at the end of the last century, other credit entities began to compete with banks in the field of loans.
These innovative entities stood out for making attractive advertising campaigns in the media and highlighting the possibility of personalizing the conditions of the financial product. These loans were no longer understood as an adaptation of the client to the requirements of the bank, but as a negotiation between the lender and the interested party, in which the needs and personal situation of the latter were decisive.
The economic crisis that we suffered since 2008 and lasted more than five years has been key to the definitive success of the loans that we are defining. One of its consequences was that the banks established tougher conditions to grant the loans, given that a significant part of those who approved had not been returned. Therefore, when the Public Administrations intervene the banks and rescue the sector, one of the measures that was promoted was to harden the requirements for the granting of the loans.
In this sense, to grant a loan, the traditional banks asked for the accreditation of a payroll and a guarantee. In addition, they verified that the client did not appear in the census of defaulters of organizations such as Financial Credit Institutions. Sometimes, these requirements could not be met by the client. Other clients were in a position to put them together, but they could take some time in that they did not have, since they needed the money quickly.
Undoubtedly, this new way of managing access to loans by conventional banks has meant that a significant percentage of the long-term customers of conventional banks have been transferred to alternative credit institutions.
Below, we tell you more reasons that explain the rise of this new type of loan. Broadly speaking, we refer to some loans that do not stand out because of their high amount. For example, hundreds of euros.
You will not have to provide a payroll or a guarantee and, in some cases, you can even find yourself in a register of defaulters like the ones we mentioned before. A regular income serves to guarantee the return.
On the other hand, doing the procedures online will save you time and money. You will not have to spend money on documents nor will you have to wait in front of the branch windows. You can manage your credit without sticking to schedules, comfortably from home. And, when the loan is approved, it will arrive in a matter of hours.
In short, a context and benefits that explain the rise of personal loans in our country.