What are online loans?

Online loans are financial products that allow you to apply for and receive money digitally, without needing to visit a physical office. The entire process—from application to fund disbursement—happens through websites or mobile apps.

In Colombia, these loans have grown in popularity because they offer fast access to money, minimal paperwork, and in some cases, more flexible requirements compared to traditional banks.

Main characteristics

  • 100% digital: Application, approval, and disbursement via internet
  • Speed: Responses in minutes or hours, not days
  • Accessible amounts: Typically from $100,000 to $5,000,000 COP
  • Short to medium terms: Usually 1 to 24 months
  • Simple documentation: ID, bank account, and proof of income

How they work

The online loan process is designed to be simple and fast:

1. Registration

You create an account on the platform with your basic data: full name, ID number, email, and phone number.

2. Credit application

You request a specific amount and repayment term. Some platforms offer loan simulators to calculate installments before applying.

3. Document submission

You upload or photograph required documents. Common requests include: ID photo (both sides), recent utility bill, bank statement, and income verification. Learn about legitimate loan requirements.

4. Automated credit evaluation

Platforms use algorithms and credit scoring systems to evaluate your payment capacity. They check your credit history in Datacrédito or TransUnion. Learn how credit studies work.

5. Approval or rejection

You receive a response—usually within minutes to 24 hours. If approved, they show you the final loan terms.

6. Contract signing

You digitally accept the contract terms. Read everything carefully before confirming.

7. Disbursement

Money is transferred to your bank account, digital wallet, or in some cases, cash pickup points. Disbursement can take from minutes to 1-2 business days.

8. Repayment

You pay installments according to the agreed schedule, usually via bank transfer, automatic debit, payment points, or mobile apps.

Basic requirements

Requirements vary by platform, but most ask for:

General requirements

  • Be of legal age: 18 years or older
  • Colombian citizen or resident: Valid Colombian ID
  • Active bank account or digital wallet: For disbursement and payment
  • Verifiable income: Employed, self-employed, or pensioner
  • Valid email and phone: For communications

Specific cases

Some platforms offer loans for specific situations:

If you see "ID-only loans," understand what this really means and what additional requirements are actually needed.

Main types of platforms

1. Digital banks and neobanks

Digital financial entities offering online loans as part of their services. Examples: Nequi, Daviplata (loans integrated into their apps).

Advantages: Supervised by Colombian financial authorities, integrated with digital wallets.

2. Fintech lending platforms

Companies specializing in quick digital loans. Many use technology for credit assessment and offer immediate approval.

Advantages: Fast approval, flexible for users without traditional credit history.

3. Traditional banks with online services

Established banks offering online credit through their websites or apps. Examples: Bancolombia, Davivienda, Banco de Bogotá.

Advantages: Established reputation, better rates if you're an existing customer. Learn about online loan vs. traditional bank.

4. P2P (peer-to-peer) platforms

Connect borrowers directly with individual or institutional investors. Less common in Colombia but growing.

Advantages: Potentially competitive rates through auction or bidding systems.

How to verify legitimacy

Before providing personal information or money, verify the company's legitimacy to avoid online loan scams.

Approval process and times

Credit evaluation

Platforms analyze multiple factors:

  • Credit history: Records in Datacrédito, TransUnion, Experian
  • Income: Proof of payment capacity
  • Existing debts: Current debt level
  • Employment stability: Time at current job
  • Behavioral data: Some use alternative information like phone payments

Approval times

Typical approval and disbursement times
Platform type Typical time
Instant loan fintechs 5-30 minutes
Digital banks 1-4 hours
Traditional banks online 1-3 business days
P2P platforms 2-7 days (funding period)

Note: Times vary by case and platform workload.

Reasons for rejection

  • Negative credit history with active defaults
  • Insufficient or unverifiable income
  • High existing debt burden
  • Incomplete or inconsistent data
  • Not meeting platform's minimum requirements

How to choose a reliable loan

1. Compare interest rates

Always ask for the Annual Effective Rate (EA). It's the only way to fairly compare. Learn how to understand interest rates and verify they don't exceed the legal usury rate.

2. Check all costs

Beyond interest, look for: administrative fees, mandatory insurance, late payment penalties, early payment fees. Watch for hidden costs.

3. Read the contract carefully

Before accepting, verify: total amount to repay, installment amounts and due dates, interest rate and additional costs, late payment consequences, and early payment conditions.

4. Verify the company's legitimacy

Confirm the platform is legitimate before providing personal data. Check if they're supervised by Colombian financial authorities.

5. Use simulators

Platforms offering loan simulators show transparency by letting you see total cost before applying.

6. Evaluate your payment capacity

Don't borrow more than you can pay. A basic rule: loan installment shouldn't exceed 30-40% of your monthly income.

7. Beware of "too good to be true" offers

"Guaranteed approval without checking," "loans in 5 minutes with no requirements," or "no credit check" are often signs of scams or predatory conditions.

Risks and precautions

Common risks

1. Scams and fraud

Fake companies request upfront payments before loan disbursement. No legitimate entity charges before giving you the money. Learn to identify online loan scams.

2. Predatory loans

Excessively high interest rates, hidden costs, or abusive collection practices. Avoid illegal lenders at all costs.

3. Over-indebtedness

Taking multiple loans simultaneously without payment capacity leads to financial collapse.

4. Personal data misuse

Fake platforms can steal your identity with documents you send. Only share information with verified companies.

Essential precautions

  • Never pay upfront: Legitimate loans disburse first, collect later
  • Verify the company: Check official registrations before sharing data
  • Don't share passwords: No entity should ask for banking passwords
  • Read contracts: Don't sign what you don't understand
  • Keep records: Save all communications and documents
  • Know your rights: Learn your rights as a financial consumer

If you can't pay

If you have payment difficulties, don't ignore it. Contact the company immediately to negotiate. Learn what to do if you can't pay a loan.

Frequently asked questions

How much money can I borrow online in Colombia?

Amounts vary by platform and your profile. Generally, online loans range from $100,000 to $5,000,000 COP. First-time borrowers usually receive smaller amounts, increasing with good payment history. Some platforms offer small loans starting from $50,000.

How long does it take to receive the money?

Depends on the platform. Some "instant" fintechs disburse in minutes after approval. Traditional banks may take 1-3 business days. Most platforms disburse within 24 hours once approved.

Can I get a loan with bad credit?

It's more difficult but possible. Some platforms specialize in loans for people with negative reports, though with higher interest rates and stricter conditions. Each case is evaluated individually.

Is it better to borrow online or from a bank?

Depends on your needs. Online loans are faster and more accessible but often with higher rates. Banks may offer better rates but stricter requirements and longer processes. Learn more in online loan vs. traditional bank.

What happens if I miss a payment?

You'll be charged late interest (higher), reported to credit bureaus affecting your score, may face collection calls, and in extreme cases, legal action. It's better to contact the lender proactively to negotiate if you foresee payment difficulties.

Do they check my credit history?

Yes, most platforms check your history in Datacrédito, TransUnion or Experian. Some are more flexible than traditional banks, but they do verify. Learn how to check your credit history for free.