Traditionally, applying for a loan from a bank and other large financial institutions may take a while to get approved. And if you are I need of a quick cash, you may want to seek other options in getting a loan. If you are in need of quick cash, then you may take into consideration getting an online loan application. You will no longer need to wait for days or a week’s time to get an approval for your needed loan.
Nowadays, it may feel like an online loan is such a great way to get money fast. However, together with the many advantages, it also has its disadvantages. Here are the advantages and disadvantages of an online loan:
- Easy approval – Compared to other types of loan, it is much easier to get an approval. Online lenders often have low criteria which you can easily meet in order to get an approval. This can include having a stable source of income, a bank account and being of legal age. Even if you have bad credit, there are online lenders that offer online loan services that are tailored to your needs. If you apply for a loan from the bank with a negative credit rating, your application will most likely end up rejected.
- Less hassle – The tiring part when applying for a loan from banks and other institutions are the paper works that you have to submit and fax to them. You will need to submit the right credentials in order to get a loan approval. However, when you apply for an online loan, you don’t have to undergo the same tiring tasks. You will only need to fill up an online form and you’re done. You no longer have to wait in line or travel personally to the bank or other institutions in order to apply for the loan. This saves you both time and energy, as you can do it comfortably in your own home with your computer.
- High fees and interest rates – Professionals would advise you not to get this loan unless the need is urgent. Online loans have higher interest rates and fees, compared to normal loans.
- Short repayment course – Normal loans from banks and other institutions can give you a repayment plan that divides your debt payment in a long span of time. Repayment can be done within the span of a year or two when getting a normal loan.
- Vague terms and condition statement – In some loan services, there may be certain terms and conditions that place you in a high-risk situation. This is often intentionally hidden or made unclear since they don’t want you to know about it.
Aside from the advantages that you may find in an online loan application, it also has its disadvantages so there are things that you need to take into consideration before getting an online loan application. One should always weigh the pros and cons before deciding on anything.