The Loan Verification Fee – What is it and What is it for?

The verification fee is used by almost all loan companies, because in this way they can easily, quickly and without unnecessary formalities confirm our identity.

Although online borrowing is a very fast way to obtain external funding, we must take into account the fact that when filling out a loan application, we will have to deal with several application stages. One of them is the verification fee, which for lenders is an easy way to confirm our identity.

Limited formalities when borrowing

Limited formalities when borrowing

Borrowing an installment loan via the Internet involves several necessary steps. Each loan company has its own individual commitment system. However, almost all institutions of the non-bank sector have some points in common. Regardless of where we decide to borrow money, we will meet a similar application system. We will have to register on the lender’s website, fill out the loan application and finally make a verification transfer.

Verification fee – what is it?

Verification fee - what is it?

The verification fee is a fee that confirms our identity. It is made in the form of a transfer from our personal bank account, so that the lender can be sure that we are the person for whom we are given in the electronic application. Loan companies usually have no way of verifying the customer only on the basis of an ID card. Thanks to the verification fee, the possibility of obtaining a loan for an ID card which has been stolen or lost is excluded.

However, the verification transfer is not the most modern form of checking customer details. Some loan companies use other verification systems, such as Quick Identification, Instantor and KontoConnect. These applications only require a password and a bank login. Do not worry – the connection is encrypted, which guarantees data security. Thanks to such modern solutions, registration and submission of the application is 100% free.

Amounts required for the verification transfer

Limited formalities when borrowing

Let us not be afraid that we will have to transfer large sums to the account of loan companies. The verification transfer has a symbolic character and its purpose is not to get money from us, but only to confirm our personal details. Usually, the lender requires a transfer of 1gr, and in some cases 1 PLN, which is the maximum amount. If the loan company’s side has a larger sum than the one just mentioned, we should be careful. In the loan market, you can still find illegally operating companies that try to extort additional fees from unconscious customers. Before deciding whether to take out a loan, you must first check the integrity of the loan company.

The verification fee is a one-off expense

The verification fee is a one-off expense

We transfer the verification fee to the lender’s account only once and only at the first loan. The situation is different when it is the next time when we decide to incur liabilities in the same institution – then the lender already has our data, so we do not have to go through the entire registration and verification process from the beginning, but only complete the application. It should be noted that the verification transfer is not refundable – even if for some reason we will not be granted a loan.

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