The loan trades are continuing among human race since the very beginning of civilization. Yes, it is true that people did not have banks in the previous times to give them loans or money was not the medium to be given. Rather, people used to lend their own grown products. So, people from the very beginning understood that lending is a very useful factor to survive in a social life and to upkeep a good lifestyle. From primitive times till now, the lending system has gone through many modifications. Now , human race is living in such an era, where they cannot think about a single day without loans. Loans are the part and parcel of human’s financial life now.
You cannot give credit to the usefulness of loans only which made it so viral in people’s life now. There is also credit of the money lenders who every day thinks about developing new strategies to make loans handier towards borrowers. Every day the process of obtaining a loan becomes easier than before. Now, with the introduction of online loans, the borrowing system is easy like purchasing grocery from shops. The online loans are the easiest and convenient option for the borrowers they ever got.
The use of computers was introduced in the banking system, immediately after the launch of this wonder invention. The use of computers made the operations of banks and accounts very easy. The computer experts dedicated their day and night to develop new software and programs for banking systems, for security of the data of the banks. Later the internet was introduced to develop the communication system. After the launch of the internet, the lenders came up with the idea of online loans.
The reason for which the online loans were introduced can be said simply as necessity. It was the urge of the borrowers to minimize their hassle while taking a loan from the lenders. The online loans have successfully done that. Also, it was the urge of the lenders to minimize their workloads while providing a loan towards the borrowers. Now, both parties can deal with loans much easier than before with the usage of online loan methods.
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What is an online loan?
An online loan actually refers to the new version of technologically upgraded lending system. According to this system, borrowers do not require to be present in the bank. The loan application system is provided on the website of the online lenders. The borrowers can apply for the desired loan; provide required information to apply for the loans through online. To apply for the loans, the borrowers only need a personal computer, working internet connection and required scanned documents. Properly fulfilling the application forms grants the application of the borrower within 5 to 6 minutes, and then the application process is completed. After the application, the borrowers get the calls from the lenders for approval. Then the lenders start their procedure of verification. The borrowers get notified through online that whether they are qualified for the loan. If all the papers are properly submitted and the borrower can meet the requirements of the lenders, then they get approved for the loan. After that they get the desired loan amount on the bank accounts they have provided to the lenders. The whole process does not take more than 7 working days. Depending on the loan amount and loan types, the process time may vary, but still it will be less than the required time provided in offline loans. So, in short an online loan is kind of loan which one can avail through online, without the requirement to go to banks physically.
How the online loans became useful?
The online loan became bless for both the borrowers and the lenders, after it was launched. The reason why it is bless can be clarified, when you compare the present scenario with past when people used to deal with offline loans. To deal with offline loans, the borrower had to be physically present in the banks with all the required documents. A normal working people always finds it hard to go to bank as his or her office also runs in the same time. The plight of normal borrowers who had to walk towards several doors of lenders for a loan was unspeakable.
There was no option of taking information about loan offers or loan requirements without going to the bank. Imagine the time when people are finding out time form their busy schedules and running from one bank to another for only obtaining some normal information. In this manner, people did not have the opportunity to search a lot and find the best offer. They had to accept the offers coming towards them easily, even if it was inconvenient. They even had the knowledge of the fact that if they had the opportunity to search for more, they could have got much better loan deals. So, offline loan was a nightmare for people. Most of the people wanted to avoid loans from banks for such hassle. As a result, they had to deal with unofficial loan lenders who charges high rates on the capitals borrowed. Fraudulent activities on unofficial loans were also very common. So, people were suffering a lot.
Now, with online loans, such problems have been erased totally. People are now more willing to take loans then before considering the ease to obtain loans now. So, let’s find out the advantages people obtain now with online loans:
The most important flexibility people now gets with an online loan is that one can apply for the loans anytime. If a money lending company has a website for online lending, then one must believe that it has the facility of remaining open for all the day and night. Now, a person does not have to find out time from busy schedules and go to the bank. They can apply for the loans anytime, even after midnight. One can even apply for the loans sitting at their office, as it takes only 5-10 minutes to complete the whole application procedure through online. So, with online loan facilities, you have your bank rights besides you, anytime you want.
All information in one page:
To get information about the loan offerings, now you do not have to roam from one information desk to another of the banks. When you open the provided website of the desired online lending company, you will get all the information about their loan offerings in one page. You do not even have to be tensed that what you forgot to ask about the loans. The lending websites try to compile all the required information a borrower might need to make them know about the loan offers they provide. You also do not need to go towards the bank to know about the required documents. You will also get to know about the requirement of documents to apply for a loan on the website.
Documentation is easy now:
The documentation was the most hectic part about a loan before there was the inception of online loans. One had to submit a lot of documents to apply for loans as everything used to be verified through documents then. Even if one wants to proof their identity, then they had to enclose three to four kinds of documents. Also, documents to proof job. Cash flow etc used to require for applying for loans. Now a day, things are very much upgraded. You do not have to show your identity card to verify who you are. You provide your social security number and the person who want to enquire about you will get all required information about you documented by the federal government. You also do not have to work on documents to show your financial status. Provide the online report of credit score and the money lenders will get to see your financial status within seconds. So, now, when you have online loans, one thing that makes you take a relief breath is that you will not have to go through the hassles of lots of documents now even if you have a new addition to your family.
Since the hassle of documents is reduced, people are also reduced from some additional problems like unnecessary time required for preparing the documents. You have the option to save the whole time and utilize it for some other purpose, when you are applying for loans online and you are free from the hassles of documentation. You also do not have to juggle around stationery items. Before, people used to hire personnel to prepare loan documents. Now, when people are totally free from the hassle, they do not have to hire anyone for such issues. On the other hand, they are saving money. The chance to make a mistake is also very low.
No delay in loan approval:
The money lenders take no time to provide approval on the applications of loans, if the borrowers can meet the requirement. Before, the borrowers use to complain that approval of loans used to take such long time for them that they might have pass the time of the problem for which they have applied for the loans. Such things can be utterly disappointing and demoralizing for people who want to take loans for financial assistance. That is why, the online loans are so much popular as they require no time at all for approval. There are some reasons for which now the online loans do not require any time. For example: all the documents are now accessible through online. The money lenders do not have to send their people to verify different information about people. Before the inception of online loans such procedures used to take months. Now, these procedures of verifying require only minutes to complete. Thus, the no delay in loan approval system has made everything very easy for the borrowers. They can get a loan approval within 3-7 office working hours. So, they do not hassle about applying for online loans anymore.
Why people still be concerned about online loans:
As stated above, the online loans have made a lot of things easy for the borrowers. Still, people will see that a lot of people are still confused about getting access to online loans. Many people still prefer to go to offline loans or not going for loans at all than going for a virtual loan provider. Now, let us see, why such things happen:
Mainly there are two reasons for the borrowers to be discouraged about getting a loan from an online lender. They are:
The concern about dependability:
When the people are taking loans that mean that they will have to submit their personal financial documents to the loan lenders and disclose their financial status to a person. Disclosing such confidential information towards a virtual identity can be very much nerve stressing for the borrowers. That is why; still borrowers want to have a personal connection with the lenders from whom they will take the desired financial assistance. Well, the online lenders have also identified this psychological dilemma running through the mind of the borrowers. That is why; they provide easy access to loan representatives for the borrowers. If a borrower wants to have a personal bond with the lenders from which they are taking their loans, they can find their representatives working online and get all solutions to their problems by talking in person with the loan representatives. If a borrower does not want to go to the lender’s office, the representatives can also stop to their home or office to end their worries.
Another issue that often creates dilemma for the borrowers to get loans is the news of online scams that are viral these days everywhere. The safety issue becomes a very concerning one, when you get to see that someone is forging financial documents is taking financial benefits through online. That is why; you must take loans from online borrowers who have a long term reputation in the market. Also, you must look at customer’s review to find out the authenticity of the information provided by the lenders.