A few years back, it was tough to acquire a loan because everything had to be done face-to-face. Now, individuals no longer need to travel nor abide by business hours to acquire money. The growing functionality of the internet has revolutionized the loan application process by widening borrowers’ options. Nowadays, you can find loan information online and begin their application processes at your own convenience. Online loan applications have gained popularity in recent years due to the following reasons:
Convenience
Perhaps the largest benefit of online loans is their convenience. Unlike traditional financial institutions, you can begin an application and potentially even get approved for a loan from the comfort of your own home. It is an expedited process that can be started outside of regular business hours, therefore decreasing the amount of time needed to spend in-branch. Information about the loan, its application process, and communications with your lender can all be done online. You can also find comparison websites and independent review sites which can help you to make the best choice for your circumstances in relatively little time.
It’s important to note that fully regulated and serviced online loan lenders will likely have you speak to a customer service representative at some point to finalize the loan, so applying online can and does also involve contact with another human being. Applying for online loans is therefore convenient without sacrificing the efficiency of good customer service.
Low Rates
Compared to traditional banks and lending institutions, online lenders do not have overhead expenses and can therefore offer lower rates and fees. There is a lot of competition amongst online lenders to stand out from the crowd since applicants are able to compare them to their competition with the click of a button. Additionally, their interests rates are fixed and do not easily fluctuate throughout the life of the loan. However, due to the lack of collateral, their interest rates can be higher depending on the situation.
Minimal Documentation Required
Due to global economic upheavals, banks are very selective in regard to lending. For an online loan, applicants have to submit their proof of identity, residence, and income to be considered. Traditionally, individuals with good credit scores have a higher chance of getting their loan application approved. This does not, however, mean that you cannot apply for online loans if your credit score is poor. Some lenders assess debt-to-income ratios instead of a singular credit score to better determine an applicant’s financial responsibility. Others offer loans for people with bad credit, whether it be to provide access to immediate funds or to slowly help build credit.
Easy Access to Information
The ability to apply within the privacy of your home without having to speak to a service representative is why many choose online loans. In addition, information is more easily accessible when using an online lender. In comparison to banks and other traditional lenders who have a fully in-person application process, there is no need to visit a branch to find out their general lending details. Lenders have their standard charges and fees, interest rates, loan eligibility and documentation, and types of repayment options listed on their website that any prospective borrower can view. Borrowers may, therefore, make an informed choice based on the lender’s reputation as well as the benefits offered.
Round the Clock Application
Brick and mortar banks and lending institutions operate in a fixed schedule. In most cases, they are only open during standard business hours and are closed during public holidays and a majority of the weekend. Online loans supersede this inconvenient time frame by making themselves accessible 24/7. Although you might not receive an immediate follow-up to your application if you apply during the late hours of the night, you can at least begin the process during any time of the day. You only need a computer and internet connection.
If you have never looked into online loans before, then they might be worth considering. The convenience, ease of access, and lowered rates and required documentation makes them a viable competitor in the lending market.
Western Shamrock Corporation does not make online loans. Any information submitted will be used for informational purposes only.
You must visit a branch location to complete your application.
