In the past, when people considered applying for a loan, an online application definitely would not have been top of mind. Instead, they thought about approaching a traditional bank to submit a loan application. For instance, when looking to purchase a new car, many people strictly limited their online searches to car reviews but didn’t investigate the possibility of also finding an online lender to help finance their purchase. Nowadays, however, the approach to finding a loan has changed. There has been a surge in use of online search engines such as Google to access the multitude of online companies willing to fund loans. These developments are changing the lending game entirely.
Applying for a online loan has been made more simple, streamlined and approachable by the internet. With this in mind, here are some of the many advantages of applying for your loan online.
- Easy comparison of rates
One of the biggest advantages to apply online for a personal loan is the fact that it allows you to search from a nationwide pool of lenders. This can be a huge time saver, and you can even use advanced search tools that will allow you to filter loans by type, rate and terms. Even if you decide to go with your local bank or credit union, you can often find discounts offered to those who apply online.
- Quick Decisions
Traditional lenders may take days or even weeks to assess the merits of a loan request. Online lenders, on the other hand, have specially designed software that analyzes the risk factors of potential borrowers, checks their information and provides a decision quickly, sometimes within just a few minutes.
- Immediate Funding
Brick-and-mortar lending companies are not only slow to evaluate your application, but they can also tend to take their time getting the money to you once you’ve been approved. Online operations are designed to expedite these transactions, and will generally give you access to your funds quicker, often the same day itself.
- Lower minimum amounts
When compared to traditional brick-and-mortar institutions, online companies have lower operating costs by nature. This significant savings to their bottom line allows them to offer better rates and smaller personal loans, which have a narrower profit margin.
Another advantage of applying for a loan online is convenience. Loan seekers have to fill the application form and provide all the required details from their homes. This facility is a great advantage for those borrowers who do not wish to visit their banks frequently.
- Lower rates of interest
Loan seekers applying online may enjoy an additional benefit in the form of lower interest rates. This is because lenders do not have to bear the additional costs associated with physical expenses. Borrowers may, therefore, repay a lower amount as the interest rate is lower, which in turn reduces their regular EMIs.
- EMI amount calculation
Banks and lending institutions have a digital calculation tool online known as a loan EMI calculator. This tool helps in identifying the monthly EMI. Loan calculators simplify the process of calculation, which would otherwise be cumbersome and complex.
- Access to information
Lenders upload all loan-related details on their website. This information pertains to charges and fees, interest rates, loan eligibility and documentation, and types of repayment options. Borrowers may, therefore, make an informed choice based on the lender’s reputation as well as the benefits offered.
- Minimal documentation
Loan applicants have to submit their identity proof, proof of residence, and proof of income to get loan approval. Individuals with a good credit score have a higher chance of getting their loan application approved.
- Less time
If you have to drive to and from the shop, it will take up your time, even if filling out the application and waiting for approval took the same amount of time. You won’t have to wait in line behind anyone else and you can get the cash deposited into your account immediately upon approval.
While there is nothing to be embarrassed about if you need to borrow money immediately, some people may still feel embarrassed walking into a payday loan shop. When you shop online, your personal loan is private, and nobody knows that you have it but you.
- Better rates
Because you are getting the loan online, you have the ability to submit one application and then let multiple lenders compete for your business.
If you go to a brick and mortar store, you’ll get whatever they offer you, and since you never even knew if there was a better offer out there, it will probably be as high as they can get away with.
- Many different options
When you apply online, you are also opening up yourself to a lot of different loan options. You can get one that automatically withdraws after two weeks with the balance or you can choose an installment loan instead. At a store, you are limited to whatever they have available and are willing to provide for you.
The advantages of online loans can never be easily overlooked. We expect speed and accessibility in every area of our lives. We have no time for waiting around. Also we are on tight schedules, with lots to fit into each day.
The Internet has simplified the loan application process. The availability of loans online is changing the way individuals borrow money. You may avail of a loan without any hassles and complexities. Additionally, online platforms allow for easy approval of loans, if the applicant has a good credit score. These benefits are therefore making online personal loan a very attractive option for loan seekers.
So if you are looking for a personal loan, than this time let it be online and enjoy all the benefits.