An online loan is a form of financing that involves internet application, approval, and disbursement. The demand for these kinds of credits has been on an upward trend lately. This situation may be attributed to a number of reasons. Maybe due to hard economic times, it is difficult for people to save, hence rely on online loans to supplement their income. Also, this might be influenced by the shift in marketing trends. Probably, due to increased awareness, many people have enough information on the industry.
Hence, they are turning from banks in favor of online loans. Or, it might simply be because these loans are convenient and lack personal touch. Whatever your reason is to bend your favoritism towards online loans, the benefits must surely outweigh the demerits. This article will, therefore, seek to investigate some of the benefits of online loans that potentially make the shift in the tradition.
Advantages of online loans
You must have heard of loan apps found on your phone’s play store. Well, that is how near your next financing is. You need to download the application from the Google play store and proceed with registration. Besides, more apps are advertised on many platforms, such as YouTube commercials, Facebook, in-app ads etc. simply take advantage of one and follow the prompts. However, you should note that apps on Google play are safe for installation on your device; the rest from unknown sources is just a gamble since some may be malware or spyware. Installing them may cause severe damage to your device, as well as losing your personal data.
Online loans present you with an exclusive option of applying for a loan from anywhere in the world. You could have gone to a camping exercise and realize you don’t have enough cash on you and just take out your phone and submit your application. Since this system applies the concept of digital money, you are likely to receive the cash in a shorter time than an hour.
Fewer data collected
While submitting your application, no more than your identity, your contact and location are probed by the lender. In other cases, you might as well be asked to give your income estimates and by extension, proof of it. The information you are likely to give in these cases is just a fraction of the details you will be asked to furnish when applying for the conventional loans from the traditional lenders such as banks and credit unions.
No personal contact
Online loans offer personalized service, in such a way that you do not have to contact the customer care or submit your application in person to the physical locations of the lender. You are required to submit your request online, loan processing will as well be done online and you may have it approved and in your account without seeing or hearing from your lender. Therefore, if you are the kind of person who values privacy, then this is the best option.
None controlled interest rates
Usually, unsecured loans have no restricted rates; hence, the rates vary depending on the borrower’s creditworthiness. Based on this assertion, online loans do not have mandatory rates on them, and since they are short-term loans, you expect slightly lower rates than those of other lenders in the industry. Most of the loans are repaid on a monthly basis, so it makes sense if the rates are lower. However, these rates do increase when you are late on a payment. Generally, online loans are affordable.
Accelerated loan processing
Unlike traditional lenders who take at least 45 days to process your loan application and get your feedback, online loans lenders use technology to ascertain the creditworthiness of the client. Therefore it takes at least 10 minutes to apply, and loan processing takes just a matter of hours to finish. You are guaranteed to get the cash in case it is approved within the same day of application.
With personal loans such as holiday loans, the one who is applying for it must refer to a specific low threshold. Implying that you cannot apply for a loan amount lower than the set minimum. This, however, does not apply on online loans; depending on your qualification, you can apply for any amount you feel comfortable repaying without a struggle. Furthermore, you choose your preferred payment plan depending on your convenience.
Also, you do not accurately specify what the purpose of the loan is to the lender. You can give a vague reason such as a health emergency and that is done with, and keep the rest private.
With online loans, you are not required to give any forms of down payments, or upfront charges, or processing fees. Hence saves your money in the event. This then allows you to borrow a slightly more significant amount knowing you would repay it without any challenges. Some lenders would give you money with some percentage less, which serves to represent the fees chargeable – processing and origination fees.
No standard paperwork
When you hear about loan application, the image which is likely to form in your head is the stuffy, long and tedious paperwork you have to work on, the long queues you have to stand on in the banks, the longtime taken for considerations, the security you have to deposit and the guarantors you have to start running around to get. Now picture a scenario where all these are not applicable; well, if you want to get fast loan Singapore, then simply borrow money online instantly.
The Bottom Line
Convenience, flexibility, availability, and affordability are some of the critical factors that make online loans very popular amongst people in this modern age. When emergencies occur, they usually don’t give you six weeks to sort them out. Hence making online loans rock support in peoples’ lives since risks are bound to occur time and again and result in losses if not taken care of with urgency they require.