With the advent of internet technologies, many businesses are moving online. This newfound migration has not left out banks and financial institutions. The paradigm shift in service provision from offline to online has seen the development of financial firms offering services exclusively online. Such firms have championed the provision of loans on line. Loans which were exclusively for the elite can now be accessed by virtually anyone who has a bank account and internet connection.
What Are Some of the Best Online Loans?
Online loans have become a twenty-first-century sensation. You can now secure some of the best loans online. These online financiers offer good online loans with competitive APRs. Although they are slightly higher than everyday traditional bank loans, their online counterparts come with a degree of convenience and some advantages that surpass the traditional banks.
Top Five Personal Loans Available Online
Just like the bank loans you are accustomed to, different online loans have different features that separate the best personal online loans from the worst ones. Here are the top five legit online loans with the best features in the market.
Upstart offers one of the top online loans. It factors more than just your FICO score. Upstart takes into consideration the course you studied, job history and education level to come up with a wholesome review of your creditworthiness and potential to pay back the loan. With a simple three-stepped process, you can be able to secure a loan with upstart.
- Lending Club
The lending club offers a variety of loans starting from personal loans to business loans. The best feature of this lender is the less stringent regulations tied to the loan. As long as you meet their credit score and income requirements, you are you are good to go.
Avant offers low interest loans online with flexible repayment plans of up to five years. Avant has an online platform where potential borrowers can check their loan options online without fear of their credit score levels being affected. This online lender has a quick turn-around-time. After the loan approval, you will receive the money one business day later.
SoFi is a stringent lender but with favorable interest rates. SoFi offers online personal loans with fixed APR ranging from 5.95 to 14.49%. These rates are lower than the average online lender whose interest rates range from 5 to 35%. On top of that, new SoFi members are entitled to $100 entry bonus.
Earnest is another online loan provider that focusses more than just your credit score. After all, your credit score alone cannot give a wholesome picture of your creditworthiness. It focusses on your past credit history, your employment history and also savings before offering trusted personal loans.
Advantages of Internet Loans – Are They Worth It?
Many people are now shifting from the traditional bank loans to the online loans. The shift is mainly because of the numerous advantages of using the online loans as opposed to the others. Some of the advantages of using online loans include;
- They are fast
Personal loans online approval and disbursement of funds take a very short time. Lenders such as Avant offer the very fast services. After the loan is approved, it will take the firm only one business day to have the money credited to your account.
- Easy application process
You do not have to travel all the way to the bank, wait for your turn to be served and fill papers to apply for a loan. With just your mobile phone and internet connectivity, you can apply for an online loan from anywhere you are. Most lenders offer an oversimplified three stepped process for the potential borrowers to follow to be granted the loan.
- A wide range of credit
Online loans are of different types, starting from the personal loans, to the student loans and even the business loans. Online lenders are currently offering online small loans and big loans alike. You can get a loan for as low as $1000 to as high as $100,000.
- Comparison option
Most online loans have tools to help you compare the features of the loan against those of the competitors. The comparison plays a major role in helping the borrowers determine which loan suits them the best.
Online loans are almost always unsecured. This helps a lot of people who lack the necessary capital to provide as collateral for the loans.
Even in the midst of all the advantages of online loans, there are some disadvantages. According to some trusted personal loans review, the interest rates on online loans are higher than the ordinary bank loans. This disparity, however, is fairly understandable, especially because the lender and the borrower have never met. It makes the borrower a high-risk client.
How to Get Small Loans Online
By following a simple five-step process, you will be able to secure yourself an online loan.
- Step one; Research on the lenders and the loan types available
Different loans have different features. Look out for the one that suits you best. Things to look out for are; eligibility requirements, interest rates, additional charges, and the repayment period.
- Step two; Submit your details
After establishing the exact lender you would wish to finance your loans, you will be required to visit their official website and submit your information. Information normally required include; social security information, phone number and address, and income details.
- Step Three; Check your loan options
With the details provided, you will be able to explore all your loan options online. The beauty of such searches is that it will not affect your credit ratings in any way.
- Step four; sign the contract
After exploring your possible loan options and settling for one, you will be presented with a soft-copy contract form. Carefully read the conditions and terms of the loan. Once you are satisfied, using an E- signature software, sign the loan contract form.
- Step five; wait for the money
Once the contract is signed, the online lenders will start processing the money. Many online lenders finish the process within one business day and ensure that the money is sent to your account by the following day.
Online loans represent the future of money lending and borrowing. Get the best loans from the comfort of your home or workplace.