A few years ago, applying for a loan used to be an uphill task. For a start, you had to ask for a day off from your employer. This means that you would spend an entire day at the bank standing in long queues with other customers that were in a similar situation. In some cases, you had to make several visits to the bank. All those challenges are now water under the bridge. The internet has made it easier for people to get loans at the click of a button. Most people are actually turning away from the traditional loans that are offered by banks. The few that are conservative are those who don’t understand the benefits of online banking. Here is a list of things that you should know before borrowing money from an online bank.
Applying for a loan from an online platform is very convenient. This is because you can file your application from the comfort of your home. All you need is a mobile device that has access to the internet. This means that anyone can apply for a loan even when they don’t have access to a computer. In fact, it doesn’t matter whether you are on your way to Hawaii or you are at the cinema. As long as you are able to browse the internet, you are good to go. With an offline bank, the bank manager will insist on seeing you personally which can really inconvenience you especially if you have a busy schedule at work.
With traditional banks, your privacy is not guaranteed. This is because you have to go to the bank in broad daylight, which means you are likely to bump into people that might start asking you questions. Keep in mind that some people are very snoopy. Such people can peep into your application forms and figure out what you are up to. But when you request for funding through an online bank, no one will get a wind of it unless you tell them because the application process is discreet. You can even apply for a loan when you are in the bathroom and walk out like nothing really happened.
3. Round the Clock Applications
Anyone who has ever applied for a loan from an offline bank will tell you that you can only file your application from Monday to Friday. If you encounter an urgent issue over the weekend, you will have to wait until Monday to approach the bank. Besides that, you have to go to the bank during working hours or you will not find any one there except the security guards. With an online bank, such limitations don’t exist. You can apply for a loan on any day and at any time.
4. Fast Approvals
When you borrow money from an online bank, your request is processed in a matter of minutes. Sometimes, you can even receive the money within the next 30 minutes or less. The bank will only look at the amount of money you need and then check your credit score. If you have a low credit score, they will match you with lenders that offer bad credit loans. When you search for Loanable loans online, you will see thousands of lenders that are ready to offer you any amount if you have good credit.
5. No Hidden Charges
This is actually the game changer. Online banks are very transparent in their transactions and operations. They don’t have hidden charges, which means you will only pay the interest rate as agreed. In fact, they really offer low interest rates when compared with offline banks probably because they don’t have brick and mortar branches. The story is different with offline banks. For a start, they exploit you financially by charging a high interest rate. They also include hidden charges such as processing fee and insurance. All these deductions are made from the principal amount, meaning they will give you less than what you applied for and still expect to pay it in full.