The process of getting a loan from traditional lenders and banks has always been long and strict. However, online loans have come to offer a better solution to Canadians.
Online banking is a practice that has been in existence for a good number of years. This kind of banking is now allowing people to borrow loans from many lenders who operate online. These loans have eliminated the traditional borrowing in which people had to fill forms and wait for them to be reviewed by the bank before they could be approved. Online lenders may differ in some ways on how they operate the online loans but they have many general similarities.
How online loans work
The lenders of these loans will have a website or a mobile application from which you apply the loans. You need to answer a few questions to confirm such things as identity and other eligibility details according to a specific lender. With some lenders, a credit check is conducted before approving you for the loan. However, most lenders will approve you without conducting a credit check. Once the lender approves you for the loan, they deposit the money directly to your bank account. The loans in most cases have short repayment periods. Some lenders may require you to pay in installments. Others may be linked to your bank account such that they can automatically withdraw the money you owe them directly from your account.
What should you expect with these loans?
- quick application process- These loans do not involve a complex and strict process of application since they do not require any paperwork. They also have simple eligibility requirements.
- Communication- With these loans, there is always efficient and convenient communication with the lender. This is through phone calls, short messages and emails.
- Quick approval and funding- As opposed to bank loans that take days of waiting for approval, with these loans you are approved within a short time (this is as short as within 30minutes of application). The money is deposited into your account immediately after the approval giving you quick access to the cash.
- Convenience – The loans offer great convenience to borrowers. This is because one can apply at the comfort of their home as long as you are connected to the internet. You do not need to travel to the lenders’ store. You can as well apply at any time since most of them operate on a 24/7 basis.
How safe are the loans?
The safety of the loans offered by online lenders may not be always guaranteed. However, it depends on the lender you choose. The fact that some lenders do not check your credit may sound so appealing. This means that you can be tempted to take an amount that you may not be able to repay. However, this is not always the case since lenders charge very high interest rates and huge penalties to people who fail to meet the agreement.
What options are available for these loans?
Here are the loan options you may access online:
- Payday loans- They are short-term loans paid after the payday
- Title Loans-They are similar to payday loans but secured with a title, for instance, your vehicle.
- Peer to peer loans
- Instant approval loans
How we can help
Before applying for any loan, it is very important that you choose a lender you can trust. You should also understand the terms and conditions associated with the loan to avoid getting yourself into bigger financial problems. We ensure that our lenders are the most reputable and trustworthy. We also help you choose the most appropriate loan for you. This includes helping you with the application process.
Online loans can, therefore, be very useful to people looking for quick financial solutions. They are also associated with many benefits, hence very recommendable.