The Internet is not the future. It is the present; it’s already here. And like most services, borrowing and lending money have moved online as well. So now you can borrow money to fund that very good idea of yours, without ever having to leave the couch.
We spend ages planning for our lives but realize life had other plans in store for us. Be it an emergency, a new idea or a sudden commitment, the need for money doesn’t always come announced. Time to visit the bank for a loan, right? Maybe not!
About Online Borrowing
Though most services we avail have moved to the web, borrowing funds hadn’t received the spotlight, it deserves until very recently. So, how do online loans work and how are they any different (or better) than traditional bank loans? Read on to find out.
Online loans focus on providing customers loans without any of the hassle associated with bank loans and at their conveniences. Before we dive deeper into the benefits and possible drawbacks of online borrowing, it’s important to know the various means of acquiring a loan on the web.
Fantastic Loans and Where to Find Them
When we talk about online borrowing here, we don’t mean applying for bank loans online. This is because you’d still have to wait for your loan application clearance and possibly visit the bank at some point. So not as convenient as the alternatives.
Online borrowing and lending began with peer-to-peer lending. As the name suggests, these are services where both borrowers and lenders (essential investors) sign up and interact. The borrower states his needs, and the lenders assess the creditworthiness of the borrower and extend loans for an agreed interest rate.
But what started off like eBay for borrowing as evolved into a much more organized platform. Individual lenders have been replaced by large financial organizations, and all the verification processes moved to the background, making the process seamless.
Here’s How To
To get a loan, you need a decent CIBIL score and… that’s it! The process itself is as easy as buying something online.
So just visit a lending service that best meets your needs, and registers with that service by providing all the necessary details.
Once that’s done, state the amount you’d like to borrow and the time frame. And as cliché, as it might sound, Voila! You’re done.
The Good, Bad and the Ugly
There are many reasons to consider online loan services. For starters, they’re quick and convenient. The approval process is instantaneous, and the interest rates are often lower too.
The loans offered online are unsecured and thus do not require any form of collateral or security.
If we had to state any downsides, it would be that one that applies to everything online: online scams and fraud. So research your lender well to avoid being mugged.
So this sums up our guide to borrowing funds online. 2Before you plunge. We would advise you to thoroughly research the services from multiple sources and strictly avoid services which demand an upfront payment. With these guidelines in mind, we wish you the very best of luck and hope you accomplish whatever it is you need funding for.
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