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Online loans are loans applied online rather than going to the premises of a bank to apply for the loan. Loans can be a great answer to peoples’ pressing financial needs. As is widely known, a loan is simply a monetary payment that a person, individual or firm receives to help solve their financial problems. There are only two ways to apply for a loan, either you apply online or you visit a bank. There are also different types of loans and many different lenders of loans. Online loans can be applied anytime online. However, the term has become synonymous to applying for personal loans online. Usually this type of loans is much smaller and ranges from $500 to $5000 dollars.
How Were Loans Acquired Previously?
In times past, it used to be that when a person needs a loan, they must go to a physical bank in their locality or a bank in any locality they choose. However, most people go to their local bank. It also used to be that to apply for a loan from a bank you must be a customer of that bank. It is often the case that you even know the branch manager of the bank.
The downside to this method of applying for a loan is that you may not get a loan if the bank manager of the loan assistant does not like you. It does not matter how pristine your credit history is. If the bank manager doesn’t like you, you will not get the loan. This opened the door for discriminatory practices against people of minority backgrounds. In fact, there are claims from members of ethnic minorities that banks discriminate against them based on their color and ethnicity. Applying for a loan online can do away with this issue.
The Brick and Mortar Way of Applying for Loans
When in the bank they give you an application form to complete. Sometimes the loan assistant in the bank will help you fill in the form electronically. In other words, you will give them your details through a series of questions. They will then enter the information they received from you on the bank computer. The application form usually requires information such as your personal details, your place of work and how much you earn, your physical address and how long you have lived in that house. This I may call a brick and mortar way of applying for a loan. The good part about the brick and mortar way of applying for a loan is that you get to know straight away that you are going to get the loan or you are not going to get it.
The “brick and mortar” way of going to the banking hall to apply for a loan is not very popular these days. Going to the bank to apply for the loan requires you to take time off your own schedule. The bank manager or the loan assistant also need to invest sometime in helping you to apply for the loan in the branch. This is not the efficient use of your time and the banks time and it’s a total waste of resources on both sides. Online loans solve the problem of investing time to visit the bank to get a loan. To some extent, it has also helped to curb discrimination against people of visible minority when they apply for loans.
Convenience of Online Loans
Nowadays applying for a loan online is the way to go; they’re quick, easy, and convenient. Imagine you are standing in a long queue just to submit a loan application form. If the loan is not granted you have to leave and try your luck in another bank. You may have to do this the whole day to find a lender who will give you a loan. Moving from one lender to the other the whole day in search of information about the loans offered by them can be tiring, stressful and expensive.
Imagine you’re seated in front of a computer which has internet and now you have access to a few lenders without moving out of your home. Most lenders have websites and you can apply for a loan from them online. All of them try to make applying for a loan online easy and convenient for the borrower. They go a mile to make it easier for the borrower. Most of them have a phone line dedicated to helping people who are applying for their loans online.
Online Loans Brokers
There are also brokers who can also help you to find a loan. These brokers have a portal of many different lenders. They categorize and rate each lender according to the criteria that they think would be useful to borrowers. They may rank the lender according to the type of online loans they offer and whether they give secured or unsecured loans. They may also indicate if the lender accepts people with bad credit. This makes applying for a loan online very attractive to many borrowers.
The advantage of such brokers is that you get to see and assess many lenders in one place all from the comfort of your home. By the criteria with which they are rates, you can tell if you can get a loan from them or not. This will save you a lot of time and frustration. You don’t have to spend time filling in the form, only to be told at the end that you don’t qualify for a loan from the lender you chose.
How Online Loan Brokers Operate.
You fill in a simple application form and leave the rest for the broker to find the perfect loan for you. You do not have to filling many different application forma for many different lenders. Just one form and the brokers will send your application to the right lender they that they think match your credit status.
That sounds easy, doesn’t it? Therefore, if you’re to make a choice between applying for an online loan and going to the bank to apply for a loan, which of them will you choose. Considering what we have discussed so far about online loan, I am sure you will choose applying for loans online. Everyone likes to and easy way to do things. We all look for the best alternative which offers the most convenience in anything we do and applying for loans is not an exception.
Things You Should Know About Online Loans Before Getting One
With the age of sophistication as well as simple ways of doing business dawning upon us, many lending companies are finding ingenious ways of satisfying their customers wants. This new way of offering service online has raised many questions in the minds of potential customers. Lenders that can answer these questions successfully and satisfy the needs of these potential customers are the ones to get the customers.
• Online loans are the type of loans that can be granted to you over the internet. That goes without saying that you need a computer and an internet connection. Most people use their phones and other portable devices to apply for online loans. The challenge therefor is, if you don’t have a computer or a mobile device, you can not apply for a loan online. In that case, the only option you have is to go to the bank and apply for the loan.
More Insight Before You Get An Online Loan
• You must first understand what types of loans are available to you. The term online loans, you may have gathered is broad. It covers any type of loan that is processed over the internet. This can be secured loans and unsecured loans, bad credit loans, personal loans as well as any type of installment loans and payday loans. Thus, there is online payday loans, online bad credit loans, online personal loans, online installment loans, online short term loans and any other loan that can be processed online. It is worth mentioning here that
There are several types of loans in the online loans portfolio. They can be payday loans, same day loans and other personal loans. It is worth mentioning here that generally, unsecured loans are not covered by any security. If you don’t pay the loan, none of your properties can be taken over by the lender. This is unlike secured loans like mortgage loans and car loans where a collateral is required.
Other Things You Should Know About Online Loans.
• Online loan providers could be the banks, lending institutions and other licensed dealers or lenders who have created a platform over the web to offer loans to people. All these lenders have one thing in common, that is, an online application form.
•When applying for online loans, the process is easy, approval is quick, and paperwork is minimal. Naturally, because you are applying from home, you will feel more at ease than when you go to the bank. It is also a faster process because there is no setting of appointment and there is no joining a line, as you would in a bank. Application forms for online loans are usually shorter than filling a physical form at the bank.
• The overall process itself is hassle free and you only need to complete an application online. The application requires you to provide the purpose of applying for the loan, your name, the amount you want, and your telephone number etc. This information will aid in the lenders in finding the best or fitting loan for the borrower. All lenders try to ensure the safety of customers’ personal information.
Online Loans Basic Requirements
• You need a bank account to get an online loan. One thing that is important is that you must have a bank account for the loan to be deposited in that account. The lender will also collect the monthly repayments from the same bank account. Apart from very few lenders who give a cash advance, most online lenders require borrowers to have a bank account.
• If the online loan is from a bank, the bank account does not need to be a from that same lender. By using electronic funds transfers and other technologically advanced payment method, you can get your money paid into which ever bank account you choose. Depending on how quickly you complete the application form and provide required supporting information, you can receive the money in the account the same day or the next day. This provides fast access to the money you need and allows you to set up automatic loan repayment terms with your lender.
Guidelines For Getting Online Loans
Before applying for any type of online loans, there are a few things you will need to know.
1. Know how the lenders’ online loan system works. If you want to avoid wasting time, you need to know how the lenders system works. Some lenders require you to complete just an online application. They will then review the application to make sure that all sections of the form are completed. They will then evaluate the application to see if you are qualified for the loan. If they determine that you qualify for the loan, they will then approve it. At this point they will ask you to submit supporting documents, such as, copies of pay slips, bank account and evidence of employment. On the other hand, some lenders will require you to fully complete the form and attach all required documents at once, before the will evaluate and decide about the loan application.
2. Know the collateral requirements; some have wide variety of collateral types, others are specific. You will need to be aware of what type of online loan you are applying for. Whether there is security requirement or no security. If there is security, you will need to know what type of security they will accept and what they won’t. You can only get a secured loan if you have the right security.
More Guidance For Getting Online Loans
- Choose your method of receiving the loan. In most cases the only option to give you the money is to pay it into your bank account. However, there are lenders who will give you a cheque that you can pay into any bank account you like. It is worth noting that, not many banks or lenders will do this. They require a bank account to give you the loan in the first place.
- Select your loan repayment method based on arrangements with lender. The loan repayment method includes the bank account from which the repayments should be collected, the amount to be collected, over which period should the collections be made and dates on which the repayments are to be collected.
Benefits of Online Loans to Lender and Borrower
The benefits of an online loan application to both the borrower and the lender cannot be overemphasized to say the least. There are many benefits enjoyed by the lender for offering online loans and there are benefits to the borrower for applying for an online loan. The list of benefits to both parties are endless. A few of these for both the lender and the borrower are discussed as below.
Benefits of online loans to the borrower
First, those applying for online loans can visit the website of the company they want to apply to at any time. There are no closing hours as compared to applying through a visit to the bank. Secondly, there is a vast array of lenders to choose from. Also, there is a loan for everyone; the loans are specific to each borrowers’ needs and conditions such as students, those in the self-employed bracket and the list goes on. Fourthly, if you have a bad credit history, no need to worry, online loans cater for people who have had bankruptcy, defaults or arrears. There’s always a loan that matches the individual’s specific circumstances.
Additionally, with online loans, the individual has the luxury of requesting for online loan quotes, loan terms, interest rate, fees charged and comparing it with others to find the best fit. There are also online advisors, call center agents and live chat sessions which can be used to access information from the institutions that the individual wants to apply for a loan from. The borrower also needs not be present at the lenders office for all documentation to be done.
Benefits of online loans to the lender
There is a decrease in the painstaking paperwork that comes from documentation. Thus, the company saves stationery. Also, the personnel needed to be hired to execute the tasks will be reduced minimally. Duplication of work is reduced and the staff have more time to concentrate on other pertinent duties that they have to attend to.
Challenges and Solutions
Just as there are two sides to every coin, there are some challenges associated with offering online loans and applying for online loans. However, these challenges are never unsurmountable. Often, they are issues that can easily be resolved using an appropriate technology such as data encryption technology and improved server reliability.
Challenges of Online Loan Application to the borrower
Applying for a loan online has inherent risks. These days anything to do with the internet is a target for hackers. Hackers can target a website to steal personal information. Therefore, people who choose to apply for a loan online may face safety and stolen identity issues. Although this must be stated, the intention is not to cause alarm for people who apply for online loans. Most loan providers make more effort to ensure that the safety of the borrowers is not compromised. The details are stored in a secured server with the latest encryption technology used to ensure borrowers get the maximum security of their data.
Another challenge that loan applicants have is to do with the area of trust and reliability. People may need to question whether they are dealing with a legitimate company. Again, this must not be alarming to anyone considering applying for loans online. Many companies are keen to get customers. As the saying goes, “no customers no business”. Consequently, loan companies go to a great length to protect their customers and to win their trust. Almost all legitimate online loan companies have a customer support line that anyone can call to check them out.
Considering Getting An Online Loan?
Therefore, if you are considering taking a loan from a lender but you want to make sure they are legitimate, just pick up the phone and call them. Applying for a loan online is not that risky, Afterall, you are taking money from these lenders and not giving them money. It is their money which is more at risk than yours. If any lender ask you to pay money in advance before they process the loan application run away from them.
Challenges of Online Loan Application to the Lender
Just like the borrower, the lender also takes a greater risk when the offer a loan online than when they grant the loan in person. There is so much fraud on the internet and a lender may give a loan to a fraudster who may never pay back the loan. Loan companies try to minimize this risk by asking for personal identity. This is often a form of government issued identity card. Therefore, don’t be surprised or alarmed if the lender ask you to supply a copy of your passport or driver’s license to support your application.
Online loans are here to stay. The convenience makes it a popular choice for many borrowers. Despite the minimal risks involved, there are increasing number of people applying for loans online. The era in which individuals applying for a loan must wait months or weeks before they get access to money to solve their financial problems is a thing of the past. Online loans are one of the new ways that lenders are choosing to meet clients’ needs. With or without a good credit rating, there’s a loan for everyone and no one is left out.
If you need a loan, click on the apply now button on our website and complete the online loan application form. It takes about 10 minutes or less to complete the application.
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.