With more and more people using internet banking, it only makes sense that it is now possible to get all types of loans online. Here are some options if you are considering getting a loan, depending on your individual needs.
Peer to Peer Lending
One of the first online lending options was peer to peer lending. This is where other individuals loan their own money out, not just banks or institutions. If you are looking for a loan, you simply put together a listing (similar to eBay or a classified ad) for what you intend to use the loan for, and people will bid on it.
The peer to peer lending company will put together all your information for the bidders to see, such as your credit score and credit history. If your loan is funded, the lending company will transfer the funds to you and you will repay them. The typical peer to peer loan is 3 years, and the interest rate varies based on your credit history and what bidders are willing to pay.
Many online banks now offer loans online as well. You simply apply for a loan through them similar to how you would apply to open a savings account. Some banks will even fund your loan 100% online.
Depending on what bank you use and what the loan is for, the process can be very easy. A popular online bank offers auto loans online, where you print out a check to give to the dealer once you’re approved. Everything is done over the internet!
Finally, even short term lenders like payday lenders and others are getting into the online loan game. Some payday lenders will allow you to apply for a payday loan online, scan in a check as collateral, and the funds will be direct deposited into your checking account once you are approved. No more hassles and no more waiting in line. You can do everything online that you once had to go to a bank for.
Post by Robert