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Rhodalyn M. Maddix
There are different ways to getting loans when you are experiencing a financial pinch. Some people opt for small loans, others want huge amounts or personal loans depending on what the need is. But recently, people have taken to online loans because of the ease with which loans can be made available to you. What a great relief it is to get money right at the time you are in need of it.
No more long queues, no more long documentation, from the comfort of your home, you can apply for online loans. The moment you satisfy all the requirements for the online loan, lenders are ready to give to you.
Getting loans in the past and online loans now
In the past, it took more time and effort when you were looking for a loan. You would have to either fax your documents or physically go to a banks branch to apply for a loan. You may not be able to even know whether you qualify immediately you apply.
The loan will have to go through processes before finally reaching you. Even if you qualify, the processing of the loan can span days if not months.
Now, with the advent of online loans, things have truly become easier for the borrower. You can get your loan within some hours or at most a day if you qualify for the loan you are applying for. The lender does not give you any stress of tossing you from department to department about the loan. Its straight forward and simple to get.
All you have to do is to log on to a website and put in their necessary details and the loan will be made available to you. That’s how easy it can get!
Things to know about online loans
It is a loan that is granted by lenders via internet.
The lenders can be licensed lenders, banks and other lending institutions. This service is normally done over a website as the individuals give their request. Requests made are attended to immediately. Online loans can come in the from of short term loans, payday loans, same-day loans and other types of personal loans.
You can get online loans in secured or unsecured terms.
When you have a collateral and you need a huge amount of money, you can apply for online loans. In the event that you do not have collateral also and you still need money, you can still apply for unsecured online loans. This type of loans does not require any item to be placed before you get the loan.
When you apply with online loans you enjoy some ease and benefits.
Your loan application process, for example, is easy. There is less paperwork before the amount is granted to you. You don’t spend a lot of hours but rather fill a single application giving your details – both personal and professional.
You should however ensure that the details given are accurate so that the lenders can process your loan within good time. Online loans is a better way to apply for loans other than going through the traditional forms of lending.
You can negotiate good rates.
Online loans also have interest rates like any other loan. However, you can negotiate the rates for the loan that you want. This will also be dependent on your credit score. A good credit score can help you negotiate the best rates that there are available. Bad credit on the other hand, may mean you have to pay high interest as the lender will consider it a risk to borrow to you.
Online loans make your loan journey smoother
The changes that the internet has brought cannot be overemphasized. It has affected several areas of life including the world of lending. There are several websites that are available for any and every information that you want about online loans. It sometimes comes across as unbelievable – but its true.
You can get an online loan too without moving from place to place. You may not need to meet the lenders that you find personally in order to get the loan you are looking for.
The extra bit is that these online loans are available on the website 24/7. In the past you would only have a few lenders and even less loan options for you. The hassle to even look for the right lender going from place to place was a big headache.
The vast options available with online loans has made applying for loans a better experience. The main concern for lenders are the monthly payments and whether you will be able to stick to the repayment plan.
Some lenders even go the extra mile of providing you with a loan calculator on their website. Once you put in the amount you want to borrow, it calculates the loan amount, how much you will be paying per month according the Annual Percentage Rate (the amount of money charged for borrowing the loan for a year). You can also get free quotes on the loan you want to take and compare with other lenders.
Your details are forwarded to the necessary department and your loan processing begins. The lender will make you an offer which best suites the information presented to them in applying for the loan.
It is advised that to even make your application for online loans even smoother, you should check out if the lender is reputable and well known.
The existence of online loans means technology has been incorporated in lending
Lenders began to immediately use computers to their advantage after it came into existence. They have fused it with their operations. The internet technology in particular brought about online loans.
Necessity brought about the creation of online loans as an easier option to borrowers who were tired of the long widening processes of traditional lenders. Online loans has proved as important to both the borrower and the lenders.
The previous way of being present in the borrowers premises and adding lengthy documentation was troublesome to many seeking for loans. The situation was worse when the time the individual was applying for loans was not corresponding to the office hours of the lender. It means borrowers will have to wait for the lender to be operational before they could apply for loans.
Online loans therefore came to the rescue of borrowers. Before technology came, those seeking for loans were also subject to accepting any offer that came to them because time was being wasted and they needed the loans badly.
With online loans, borrowers can now have better deals as its easier to get information about the lenders they are dealing with and choose the best option. There no more exists the duplication of work and time-consuming processes that lenders had to go through in giving loans to borrowers. This therefore saves them time and cost and makes lenders more willing to give their loans at a good cost.
The complaint of delay is now a thing of the past. Once the applicant applies for the loan, there is a search for a matching loan that will best suit them with less time involved.
Concerns that people have with online loans
Though its true that online loans have come to ease some aspects of borrowing, there are still concerns when it comes to getting online loans. Some of these concerns will be discussed below.
Will I get better loan terms when I apply for online loans?
To get a loan with good terms that will be suitable for you is a good option. However, to get good loans terms will depend on the lenders rate being charged for the loan, the amount being borrowed and your credit score.
If the lender has high interest rates, it means you will pay more for the online loans you are receiving. It also happens that if you have a good credit score, some lenders will allow a negotiation in order for you to get the best rate available.
A not too great credit score may not allow you to bargain the rates and the online loan terms that you want.
Is it possible to get online loans with bad credit?
Generally, getting a loan with a credit score that is low is not easy. Despite this, there are online lenders willing to give to those with bad credit. You can get online loans even with bad credit.
Many people looking for loans turn to online lenders when they have been refused a loan from the traditional banks. Online lenders are therefore considered as very important because they are more willing to give loans to those who need them than the mainline lenders.
What loan types will I get?
Online loans come in the form of secured or unsecured. To get loans will also depend on the purpose for which you need the loan for. You can either have secured or unsecured online loans. Secured loans require collateral whilst unsecured online loans require that you present a valuable item before you get the loan.
If you are in a situation where you need a loan to finance your business then business loans will be appropriate for you. Those that need money fast for payments can go in for payday loans all online. What a convenience!
Will my information be kept confidential?
Many loan seekers have asked this question and the answer to that is a yes. Online lenders have beefed up their security and are now ensuring that the information that is shared stays between you and the lender. Lenders who give online loans take steps to ensure that every information is kept confidential.
How long does it take before I know if I’ve qualified for the loan
Every applicant wants to know whether they will qualify for the loan they are applying for or not. With online loans, its faster to know whether your application has gone through or not. You can get a response within some minutes or a few hours.
How soon can I get access to my funds and from where?
Depending on the type of loan you are applying for, it may take some time to be processed. Business loans for example will take a bit of more time that online payday loans. If you go in for a secured online loan also, there will be the need for time for the value of your collateral to be appraised.
With respect to where the loan will be deposited, lenders usually ask for a checking or a savings account. The funds will be transferred into that account. Online loans are now held in the high esteem of being easy and convenient for loan applicants. You have access to many lenders and you can compare the rates and terms being offered.
Peer-to-peer lending: an option of online loans for those with bad credit
Not everyone applying for loans have good credit. For some, their credit score is below the acceptable levels. This makes them think it is impossible to get any loan at all. The fact is: bad credit makes it difficult to get loans when you need them. But that notwithstanding peer-to-peer loans are an option for those with bad credit.
Peer-to-peer loans is a form of online loans that those with bad can turn to. Peer-to-peer loans is a great way of searching for funding when you need it. This type of lending is simply termed as people investing in people and their services are mainly operated online.
When someone needs a loan, they can visit a site and list a loan stating the amount they want and the reason why they want the loan with any other necessary details that they want to add.
The lenders or investors then have the option to give the loan to you or not. The loans is given for any use whether business or personal. The worry with peer-to-peer loans though is how to repay.
This is because if more than one person contributes to give you a loan, you would certainly wonder how to pay them back. In spite of this, borrowers still find a way to work around this difficulty to access the loans that they need and work out with the lenders on how to repay.
Some benefits of peer-to-peer loans as an option for online loans
You can borrow anonymously
When you list your loan on the website the lenders do not know who you are or any other details once you do not add it in your application. This keeps your identity safe.
Better interest rates
Most peer-to-peer lending sites are in competition for borrowers. They will therefore put out the best rate there is so that they stay in business. Hence their services are characterized by good interest rates in order to get more people to borrow from them. This is an offer you may not get if you had used traditional lenders.
Serves as a good alternative to other loan types
Whilst it can be tough to get a loan with traditional lenders, peer-to-peer lending sites have made getting online loans easy. People are therefore drawn to their services when they want online loans. Payday loans for instance have very high interest rates that many borrowers cannot bear. The payback time is also longer for this online loan option.
Longer payback time
Peer-to-peer lending sites giving online loans have a longer time to repay the loans. With a longer time, you have lower monthly payments to make. This is very beneficial to many borrowers because it gives a flexible time in which you can pay back the loan.
Also those with other financial obligations will not be overburdened when they go in for this online loan option. You can comfortably make you repayments alongside other financial duties that you have.
Speed in getting the loan
With traditional banks, it can take a while before you account will be funded with the loan that you apply for. This causes a jam for many borrowers because most of the time, the money is needed for emergency purposes.
Waiting is not really an option for them. That is why online loans through peer-to-peer sites can guarantee them getting the money fast into their account and not waiting for a very long time. It enables people to get loans at the time they need it.
Advantages of online loans
Ease in identifying appropriate loan
With the option of comparing providers, borrowers are able to easily cross out the loans which will be inappropriate for their needs. This can be done by comparing the several lenders that are available over the internet.
These quotes state information on the interest rate, monthly payments and other details about the loan. The borrower is not under any obligation to take any of the loan offers unless they are comfortable with it.
Approval is easy
As compared to other loan types, it is very easy to be approved for online loans. Online lenders do not have simple terms and conditions. It requires a stable source of income and having the legal age to be able to access these loans.
The times past where you apply for loans with a lot of documents and paperwork is very minimal when applying for online loans. The process is not as tiring as if you were applying through the traditional banks.
Once you fill up the online form, the processing of getting the loan will be started. It does not take a long time to know whether you qualify for the loan you are applying for all from the comfort of wherever you may be with internet access.
Disadvantages of online loans
People still feel the need to bond with the lender before accepting any agreement. Without this, some people although they need loans may not go in for them.
Lenders have however sought to address this by attempting to create bonds through giving borrowers the opportunity to be assigned to their representatives so they can have an interaction with them.
Safety also features prominently when borrowers want loans.
Though this is a concern, lenders are also ensuring that the information that is shared with them is held in confidence.
They have introduced encrypted messages to prevent unauthorized persons from accessing the information shared between the lender and loan applicants. Online scams are on the rise and no one wants to fall a victim.
Borrowers are also not comfortable in receiving messages that are in the form of marketing campaigns. Laws have been instituted to ensure that the privacy of lenders are not infringed upon. Any misuse of a borrowers information has a channel through which it can be addressed.
You may likely have to pay high interest rates
The interest rates for online loans are slightly higher than that of the normal loans because of the higher risk factor involved in the process of lending. Due to this lenders are to be prepared before hand for the rates that will be offered to them.
Sometimes there are charges of late payment of fees. You would have to find out from your lender before signing any agreement because the late fee charged can be twice or more than the amount borrowed.
Shorter repayment period
Online loans require you to pay back the loans within a shorter time as compared to other loans. This timeframe can be within some weeks or a couple of months as compared to normal loans where you have a year or two to pay back the loan.
Terms and conditions lack detail
The downside that sometimes comes with online loans is that you may not have a full view of the terms and conditions of the loan. Due to the online nature of the application you may not see everything you need to see before getting the loan which makes it one of the big problem of getting online loans.
Online loans have come to stay and the number of users are on the increase. Traditional banks have even taken heed to their online component very well. They are making efforts to increase their online presence.
You have the option of browsing through different lenders before you make a choice on the online loans that you need. There is a possibility of getting online loans that best suit you, you would only have to search.
Disclaimer: All loans offered through this website are subject to credit and underwriting approval. AfterLoans.ca is a lead referral company, not a lender. AfterLoans only works with financial service providers that adhere to Canadian laws and regulations. Our lenders lend from $500-$5,000. Loans amortization is between 6-36 months. APRs range from 19.99% to 55%. The actual APR charged will depend on the lender’s assessment of your credit profile. For example, on a $1000 loan borrowed for 12 months at 29.9%, the monthly payment will be $97.24; with a total repayment, including interest, of $1166.88 There is also lender’s optional loan protection policy. In the event of a missed payment an insufficient funds fee of around 45$ may be charged (dependent on the lender). If you default on your loan payment plan the lender may terminate the plan and the remaining balance will become payable immediately. Our lenders employ fair debt collection practices, but will pursue the payment of Outstanding debts to the full extent that Canadian law allows.