I had a look on HSBC today regarding loan rates and what not as I'm going to need a few quid to top up what we've saved for the wedding. I figured I might stick an iMac on top too as the rate is quite good. What shocked me though is how easy the process was online.

I used the calculator to pick an amount, length and monthly repayment. I was then asked in brief income and outgoings and had the option to proceed. No person to person contact, no checks/confirmations at this point. So I thought what the hell and pressed to continue.

Accepted! That's it. What about the money though?

I simply had to "sign" the agreement by ticking two boxes and instantly I had the money.

I'm amazed. It shouldnt be that easy should it? I mean it's good from my point of view but bloody scary too. I thought I'd at least have to go into a branch to sign something.

Applying for a loan online is easy... as long as the automated credit checking system clears your application. If your application was accepted automatically and relatively quickly then you must have cleared all the credit check hurdles that HSBC uses to vet customers.

The process will be slower if you are a borderline case or there are things that a real person needs to check out (for example, if there is a notice of correction on your credit file someone, in theory at least, has to actually read what it says and then make a decision about whether to proceed).

If the credit checking procedure is robust and reliable and the individual meets the eligibility criteria of the agreement then there isn't any real reason what the process should be slow. The real question is how robust the system is in verifying that the individual can afford the loan in the first place. Only time will tell if such things have been tightened up since the credit crunch hit (have a wild guess at what I think the answer to that one is).

The security issue would worry me. If it's done like that how do they stop someone taking out a loan in your name?

I understand clearing the credit check online but not discussing outgoings with anyone (you could lie to yourself if you're stupid) or more importantly "signing" by ticking a box seems a bit to me.

Isn't it though. And it's not as if bad credit has caused us any trouble before, is it?

I did it online once, when I was thinking about buying a car. The loan application was online but then I had to sign some papers that arrived in the post and send them back, so it still took a few extra days.