Nowadays many services are implemented on online platforms like shopping, selling or buying etc. Online banking facilities are also nowadays used widely. There are many online facilties which is provided by banks for their customer adn really they works good and fast but online loans are slower to adapt as comapred to other bank’s facilities. As we know that nowadays we can appy for loans online or offline but there is always a question putup in our mind that is online loans are safe? or the offline one have high interest rate and requires alot documentaions and the major question putup in our mind is that which one should i choose online or offline? So now without wasting the time let’s just start this tour, tight your seatbelts and be ready for this tour.
There are many ways to get online approval and offline loan. Online loans are generally provided by banks or by third parties but offline loans are always provided by banks. So there is no option, I mean it doesn’t matter whether you want to apply for the loan online or offline. The thing is, you should go with the one that offers the lowest interest rate. But the lowest rate does not include the immature behavior that anyone is ready to give you a loan and as a process you gave them your personal documents and the only result is that you will be scammed by someone.
And don’t worry i’m not saying that this happens only in online loans, frauds are everywhere doesn’t matter what you choose just you have to be carefull and knowledgeable about everything.
Online Loan? 🤔 Safety Concerns
So many of us kno about that online loans are not 100% secure but if try a little bit then we can avoid the risk in online loans as well as we can also avoid the scams which are mostly happens when you are a new to apply for online loans. Now there are steps to follow to get loans from safe and secure lenders instead of fraud one. There are lenders who provide online loans as securely as provided by our reputable Banks but just you have to follow the step that you have to find a reputable lender.
As we here trying to buy online loans then we have to do some online stuff like research. So now here research doen’t mean that you have to do rocketscience thing, just you have to research about online loans which gaves you the result for all reputable as well as some fraud online lenders. Now you have to check them all, not just stuck on one. When you find your best one loans then reasearch about it more like interest rates or its terms and conditions etc. Also the lenders should check your documents like your credit score and many more which actually depends on the lender. After confirming that the loan doesn’t wreck your financial condtion, the lender initiates the procedure for online loan.
Online loans are quite easy to approved as compared to Bank loans as well as banks have some extra charges because they have to work with physical branches of the bank and also have some extra charges for their precedure. Online loans mostly offers lower interest rate because they don’t have extra charges as bank do. Sometimes bank will reject your loan application due to incomplete documentations but online lenders try to approve your loan if any of your document is incomplete, just they try alternative documentations like utiliy payments or debt to income ratio etc. Sometimes online lenders can check your social network to ensure about every posibilty to approve your application.
Sometimes small mistakes will lead to big damage. We should always be smarter to work online, you should know that there are many scammers on the internet who always try to make you fool. Let’s talk about a basic rule of getting avoid scam from you is that whenever you visit any website doesn’t matter it is for online loans or a banking website, you should always check a small lock icone on the address bar of your browser. This lock icon is the surity about that the website you browsing is safe for you.
There are some keypoints you should notice when you browsing any online lenders website, these keypoints shows that the website you are surfing is legitmate or not?
- Always check the little errors in the website or even in the desing of website like the speling erorrs, the information is legitmate or it is just a copy paste. sometimes these fake webiste do some silly grammer mistake, i recommend you to check it once .
- There are many website who claims that their websites are not fake but they always do same and silly mistake like they don’t have any office address or P.O. Box address.
- As i mentioned above that if there’s any missing lock in the adress bar of your browser then you should avoid to using the webiste because maybe they steal your data or the website is fraud. check is there an “S” missing in the https://…. address bar of your browser, which is knows as insecure connection.
- You can use Encryption Softwares to make your personal information secure or encrypted. You can download it or buy them from any software store, just install it and configure. With the help of this software will able to stop anyone who wants unauthorized access of your personal details.
Payday Loans | Do you know about them?
Payday Loans generally have higher interest rate as compared to another online loans, paday loans mostly have average interest rate vary between 300% to 400% and sometimes in some cases the interest rate of payday loans will cross the line from 400% to above. This sounds like a owner of the loan have to pay 3-4 times more in payday loans as compared to other loans. Payday loans are high-cost, for short period and they can down your financial conditions.
When you search about online loans then maybe you find a vast varity of advertisment of online loans and many of them are know as Bad credit loans. Payday loans adverisement generally know by the name bad credit or no problem loans. If someone offers you loan approval i just 30 days but with a fee of $2000, is it worthy if the loan is the payday. I don’t give damn on it, think about yourself – is it really worthy.
I saw many people who apply for high interest rate loans, keep in mind that it doesn’t matter the loan you were trying to apply is payday or installment base. If the interest rate is high then this maybe a reason to lead you to the way to bankrupt. Because you should think yourself if you apply for a loan which offers you high interest rate then how is it beneficial for you and if the loan is payday then, NO! you should think about it.
There are many countries where payday loans are banned like as far as i know there 15 countries in USA where payday “Bad credit” loans are banned. For your kind information there are many scammers and illegal webpages and lending sites who offers payday loans. As i mentioned above that these loans are high interest based and can be the reason to make you bankrupt. There are some ways by which you can identify that which website or lending page offers payday based loans or which not. Below i show you some ways to identify these types of “Bad credit” loans:
These type of online loans generally for short time period: The time period to pay the payday loan is generally about a month or maybe sometime less than a month. You should find a loan whether it is online or offline that offers you to pay monthly on over several years. Always choose the online loan which offers low interest rates without any prepayment or penalty.
Payday offers high interest rates as well as high fees: Payday loans such a headache sometimes, there are many companies offers payday loans and whenver your loan is renewed you have to pay extra charges. Let’s understand it with a simple example – suppose you take a $200 payday loan which actually become $215 with additional fee or charge, now if you want to renew this payday loan because due to sme reason you are not able to pay that then it becmes $230. The renew fee or extra charge totally depends on amount you owe.
Payday don’t need any credit check: whenever you try to get a loan from any lender, the first priority of them is to check your credit score because it is important. Actually your credit score will describe that you are eligible for it or after the loan it maybe down your financial conditions. As well as payday loan can be sometimes trun into addiciton, yes maybe it’s sounds funny but if you think about it practically then you should agree with me. Many people who need money on daily bases or we can say for daily expenses can try to apply for payday loans and it actually turn into a bad decision because on one hand we get money and on another hand we owed loan with high interest rate.
Payday demands Up-front payments: There are many online lenders who offers online payday loans but they ask about advance money from you. You should note that, if they are asking for up-front payments then you have to leave them because there maybe chance of getting loose your money. There are many frauds realted to payday loans because they offers loan easily and without any hard documentation but you have to think about that if they claims that they give you loan without any hard documentation then why they askyou for money. I’ll suggest you that if you need money for short time then at first you should ask from your friends or family members and also you can take advance from your company where you work.
Let’s Hit on Online v/s. Bank loan: The Pros and cons:
Online loans | features & Benefits
NO need to fill Paper applications: Online loans is a way easy as compared to Bank loans because you don’t have to fill the paper or hard documents just you have to fill all it online. In online loan application you have fill only few information related to your identity and loan details like your contact information, Aadhaar details, income and some bank related information. Online loan application process is fast as compared to bank loans because in bank loans you have to fill all the forms with many information and have to wait in a row to submit it, it take alot time in confirmation in banking loans.
Comparision is Easy: This is one of the best benefit of online loans, as we know that there are many companies provide online loans with different – different offers. Now as you are searching online for a loan then it has been easy for you to make a comparission between these several online loan offers and choose the one which perfectly suits you.
Reasons to not choose Online loans:
As the loan process is fully online, some users have trust issues about them. There are many cmpanies which offers online loans but there are also many fraud companies who claims that they provide you online loans easily and serioulsy they are not trustworthy. Sometimes it can be difficult to find out which online lender is safe or which one is fraud. We mentoned some ways or step to take while you purchasing a online loan, please read them carefully because they might be helfull to find out which one is fake and which one is not.
Sometimes There is doubt about sharing your personal information with online companies, as nowadays it has been seen that many comapnies loose their data and this can be anything like your personal information such as Identity card number, social security number. There is always a doubt in mind that what if your personal information will be shared with another companies without knowing you. And the last one and irritating one is that if somehow you registered in any online loan website or app then after that you will start receiving emails and phone calls for online loans.
Banking loans | Benefits:
If you have an existing account in any bank from several years and your credit score is good then there is an chance to get loan approval easily with low interest rates and more benefits. Bank alwasy try to provide loans to them who needs it but you make sure that you follow all the rules-regulation of the bank. You can get bank loan approval on the basis of your needs like if you are applying a loan for your business to buy any machinery then you have to make a report on it in which you show estimated charges of the machinery and how these macinery will improve your business so that you were pay the loan as soon as possible. Bank provides loan as per capacity and which totally depends on the borrower needs.
As Banks are not fraud then sharing information with them is trustworthy. There are many loans provided by banks for individual or for the companies. When buying loans online just you read their terms and conditions but when you are try to apply bank loan then you are able to ask any question related to your loan and bank should solve all queries as soon as possible.
Why not, Banking loans:
There is many disadvantages of banking loans like if you get a loan for buying any products then you have to pay a way more than the actuall price of the product and it gives a hughe impact on your credit score. Bank loan approval is easy but only for them who are eligible only from bank’s prespective. Suppose you have to apply for a loan first time and you don’t have account in the bank previously then it would be difficult for you to get approval on your banking loan.
Banking loans approval is not easy and if somehow you will get approved for a loan then you have to pay a fee to the bank for processing your loan. The amount of extra charge or fee to processing the loan is debited fom your loan amount and it is in the terms of percentage like if you apply a loan of Rs1,00,000 and the fee charges is about 10% then the aount of the fee charges is Rs10,000 and you will get Rs.90,000 as your loan.
Think about it:
Whenever you are try to apply for a loan online then do some reasearch and find a reputable lenders so that you can avoid the toubles of online loans. And remember don’t give any extra charges or any fee to the online lenders for approving your loans because there many options to get loan from other lenders or companies.
Bank always have reputation in market but somehow they are not the one of the best option for getting loans. To get a loan online easily and without having any trouble, you have do a proper search and find out a reputable lender or a company which gurantees that they give you loan approval without getting any extra charges or fee. And always remember that it is not easy job to find out which online lender is fraud or not.
The End | Thankyou for giving your precious time to read this article, this article is requested by my visitor- @vedant-vishwa. Hope i describe all the elements easily.