Going to the bank to get your loan application approved is an arduous task, which involves time and can cause immense stress. The Online Loan route is a great alternative in this age. Here are a few advantages and disadvantages involved in the process.
- Less hassle: Since it is online, you don’t have to face the hassle of standing in queues for hours. The online application process is quick and simple and can be done from just about anywhere, even within the confines of your home.
- Easy approval and access: Different online lenders have low approval criteria, unlike other lenders. Online loan approval process is quite short, meaning you may get the money within a matter of hours, so you don’t have to wait with crossed fingers for a long time, wondering if your application will be approved. Moreover, there are no pages to read and sign.
- Blacklisted: Most online lenders offer loans for blacklisted persons as well, giving those with a bad credit rating some financial respite.
- Unclear Terms and Conditions: some online lenders are not very clear about their terms and conditions, which may put you in risky financial situations later.
- Short repayment: Most online lenders need the borrower to repay within a short period of time, which may prove quite stressful for an already financially stressed person.
- High interest rates: Online lenders offer loans at high interest rates, so make sure you keep it as the last resort. Defaulting payments may incur you huge losses in the form of default fee. Sometimes the final payment may be double or triple your actual loan amount.
- Before going ahead with the online loan application, it is best to weigh all pros and cons by reading the fine print so that you don’t end up in wrong hands.