Gone are the days when the only way to get a loan was to go to the bank and sit through lengthy processes and paperwork filling all the time feeling nervous about whether the loan is going to come through or not. For the most part, the customer was at the receiving end of scrutiny, the level of which depended upon what kind of loan was being applied for and in what capacity.
Not so much anymore.
Apply for a loan online: the “why” of it-
The alternative to offline application is applying for loans online which is a popular option already with a huge population. Reason: people are busy and time is money.
The convenience of applying of a loan online and the time that gets saved in the bargain are the biggest pull factors and clearly both of these are very relevant and critical. What also works in favor of an online application is the way some of the services have been devised from structure point of view. For example, if one takes the model of crowdfunding loans, it’s a win-win situation for both the borrower and the lender. There is almost zero formality and on top of this the borrower can pitch the amount he or she want, the lender can donate what he or she can afford and actually earn money from the interest accrued on the loan. This makes all parties involved very happy.
The other ‘why” that lends support to the idea of online loans is the facility of having lower rates. For the most part, online lenders do not have the same overheads and running costs as that of a proper lending office and given this, they are in a position to charge much lower rates and fees.
Easier access is one more point in favor of online loans. When it comes to securing a loan from a bank, the eligibility and selection criteria can be a difficult roadblock to clear in some cases. In the case of online, it is easier to secure a loan even for people who may not have the best credit history. Online lenders are not as picky as banks and this is helpful for individuals or businesses that may not be in the position to meet all the requirements of traditional lending institutions.
Apply for a loan online: the “how” of it-
Now that the case for applying for a loan online has been successfully made, let us get into the “how” of it.
The first step when wanting to apply for a loan online is to identify the lending platform that one wants to approach. There could be more than one and most of them offer services that help even a first timer get through the process easily.
When doing research on which lender to go with there are a few points to consider and note. These would be things like:
-What is the eligibility process?
– What and how are the repayments going to be structured?
-What are the interest rates and how are these going to apply?
-What is the tenure going to be?
-What is the disbursal feel like? Is there any kind of additional fee?
These are important questions that need to be answered as part of the research process.
Once you have this material ready, compare all data to figure out and identify which lender is going to be the most workable option for you. That taken care of, the next step is to look through all the documentation that is required for the application and putting the same together. In most cases it consists of ID proof, a proof of address and bank statements for assessment.
The final step is to get online and apply for the loan. Makes the process hassle free and far less cumbersome. It really is as simple and straightforward as that. Try it!