Is an online loan agreement equivalent to a paper loan?

Is an online loan agreement equivalent to a paper loan?

To get a loan, people go either to the offices of financial companies or via the Internet. In either case, a person must receive a contract either in his hands, or it will be sent by e-mail. Many people have a question, do paper and electronic contracts have the same legal force?


The official NBU Facebook page gave an answer to this question. NBU says “yes”. Now let’s talk about why it is so from the side of legislation.


A person signs with a one-time password when he applies for a loan online in a mobile application or on a website. According to the legislation on electronic contracts, a one-time password has the same legal force as an electronic signature or a handwritten signature. An electronic contract has the same effect as a written contract. It means not to neglect credit obligations if they were concluded online.


It is important to understand the client must tick the box “I confirm my consent to the processing of my personal data, in particular their transfer to the credit bureau” when concluding a contract on the site. It means not only the issuing company knows about your loan. All information about the agreement will be available to the credit bureau.


Your credit history will deteriorate significantly if you do not fulfill the terms of the loan agreement was signed online. It will be much more difficult to get a new loan. It is even worse if the financial institution passes information about you to a collection company. Their representatives will start calling with demands to repay the debt.

What do financial experts advise when concluding an online contract?


✅ The most commonplace and important advice is to always read what you sign. Be sure to pay attention to the size of the commission, the interest rate on the loan, as well as penalties for non-compliance with the terms of the contract.


It is important to remember there are certain restrictions on the amount of the fine from January of this year. It applies to loan amounts not exceeding one minimum wage. At the same time, the amount of fines and penalties cannot exceed double the amount of the loan. But if the loan amount is more than one minimum wage, then the fines cannot exceed half the amount of the loan body. It is important to understand such restrictions do not apply to payments for other violations of the loan agreement. Therefore, it must be read carefully.


⚠️ If your loan is taken for a period of more than a month, and its size is greater than the minimum, the financial company must issue you not only an agreement, but also a special passport for a consumer loan.


⚠️ Be sure to comply with the terms of the signed online contract. If a financial institution violates the terms of the document, it is imperative to contact the National Bank of Ukraine. If you have any problems with the contract or you doubt whether it is worth signing it, it is better to consult with a professional lawyer. It is convenient to find a specialist with the UniExpert application.