Loan Application – In life, you can always expect the unexpected, and that includes even your financial side of life. And since it is the unexpected, there is hardly any money to cover whatever crisis has arisen, so many opt for a loan.
One can apply for a loan from a bank or other institutions in the lending division, but to actually qualify and get that loan is another story. Furthermore the whole process can be very taxing, adding to your stress.
A solution that more and more people are taking is the Online Loan route; but even it too has its downsides.
Before you log on and start applying, here is a quick look at the advantages and disadvantages of online loans.
- Easy approval and access – online lenders have rather low approval criteria, which makes it available to a wide range of folk.
- Time saving – the waiting period for an approval from banks and the other institutions can be very long and an emergency you have no time to spare. Online approval periods are very short, some are just within hours.
- Blacklisted? – Some online lenders even cater for some of those people with not so good credit history – terms and conditions apply.
- Less hassles – there are no queues to stand in for hours on end, and there are no pages and pages of documents to read and sign.
- Convenience – you can apply for a loan from the comfort of your home or office – even from your cellphone, all you need is an internet connection.
- Steep fess and High interest rates – Make sure you get this kind of loan if you absolutely need it as the interest rates are very high. Moreover, try not default in repayments as the late fees can double or even triple your loan amount.
- Short repayment repayments – online lenders require you to pay back your loan within a short course of time, which could prove stressful at times.
- Unclear Terms and Conditions – the T’s & C’s of online lenders are sometimes so vague they can put you in a jam or some rather risky financial situations.
So, make sure you weigh the pros and cons of online loaning services by reading the fine print and researching before you jump into anything.
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