Research shows that most people prefer to borrow money from online banks. This is because they regard them to be swifter in processing applications than offline financial institutions. In fact, it’s only about 20 percent of loans that are applied from brick and mortar banks. No one wants to beat heavy traffic on their way to the bank when they know they can get the same loan on the internet. And that’s not all. The lenders will not come looking for you when you don’t pay the loan. Since their platform is directly linked with your bank account, they will wait until you have deposited some money to deduct the agreed monthly or weekly payment which makes payments easy. This results in a win-win for both the lender and the borrower. Just in case you have never tried applying for a loan online, here is a list of benefits that are encouraging many people to give it the first priority.
- High Chances of Approval
Those who apply for loans online have very high chances of being granted their request. This is because there are multiple lenders on the internet. Although majority of them will look at your credit history, this doesn’t mean that you will not get the money. If your credit score is poor, they will definitely hook you up with lenders that specialize in offering bad credit loans. Offline banks on the other hand are very strict.
They will not lend you even a single cent if you have a low credit score. They will even ask for collateral. The other advantage of online loans is that you are able to compare the loans that are offered by different lenders. This increases your chances of getting a loan that has favorable terms and conditions. With offline loans, you just have to borrow from the first bank that you come across even when it’s clear they are out to milk your pockets dry.
- Remote Application Process
Online loans give you the privilege of applying for a loan from a remote location. You can therefore submit your application while on the go or while watching TV at home. All you have to do is get a smartphone or computer and access the lender’s website. You will then fill in your personal details in the provided forms and finalize by clicking the submit button. It’s as easy as a walk in the park. You will get an instant notification after a few seconds.
Once your application has been approved, the money will reflect in your indicated bank account after a couple of minutes. Offline loans can be a pain in the neck. First you will have to budget for your transport and then spend a whole day due to the long queues. As a matter of fact, offline banks are very inconsiderate to their customers. They make you stand for many hours in a place where customers are not allowed to use the bathroom.
- Low Interest Rate.
Online loans feature a low interest rate. They also offer very flexible payment terms. Most importantly, they can never charge you more than what you initially bargained for. In fact, their interest rate doesn’t change regardless of the changes in inflation. With offline loans, you will be required to pay a processing fee of a certain percent and insurance. These are just crazy tactics that they use to ensure that you don’t get exactly what you applied for.