How To Choose The Best Online Loan
Whether you need a loan fast or you’re just looking to get a loan with great rates, an online loan could be the perfect solution for you.
You can apply for a loan without having to leave your home, and you’ll receive a response quickly. Applying for an online loan may seem a bit daunting, as for a lot of people it’s a foreign concept, you may be wondering, ‘Where do I even start?’.
Keep reading and you’ll learn what the typical online loan application process is and some tips to make sure it goes smoothly. You’ll quickly learn that applying for a loan online might even be simpler than going through a bank!
1. Do Your Research
In the whole online loan application process, this might just be the most crucial step since you want to ensure that you choose a reputable lender that meets your needs.
Did you know that there are two types of lenders?
There are low-cost lenders and high-cost lenders, so be wary of which lender you choose as you ideally want to be choosing a low-cost lender. High-cost lenders typically provide short-term loans and charge more than 50% in interest. Ouch! Whereas, low-cost lenders provide loans that start at 6 months and charge a lot less in interest.
Companies like Loansmart have rates that range between 9.95% and 35.50%. So make sure you compare interest rates and repayment options from different lenders and choose to go with a low-cost lender like Loansmart.
2. Complete The Online Loan Application Form
Once you’ve found a lender with rates that you’re happy with, it’s time to start filling out an online loan application form. This process is usually pretty straightforward and can often be done in minutes. All you’ll need to do is fill out some basic information about yourself and the loan amount you are after.
3. Provide ID & Online Access To Your Bank Statements
In order to complete your loan application, you will need to provide us with a copy of your photo ID to ensure that you are who you say you are and that you are of legal borrowing age. In addition, you’ll need to give us online access to your bank statements.
This is to confirm your income and to ensure that you have the ability to repay the loan. When you choose a reputable lender, the process of uploading required documents is done easily, quickly, and most importantly, securely. Loansmart will send you a secure link that authorises them to view your statements online.
Information is stored securely and bank statement data is securely retrieved without having access to your login details
4. Discuss Your Needs With a Consultant
A consultant will then call you to introduce themselves and to discuss with you your needs and requirements for the loan. While you wait for the call, take some time to think about what you need from your loan and lender.
What is your ideal repayment schedule? What kind of interest rate are you looking for? Once you have a clear idea of what you want, it will be much easier to communicate your needs to the consultant.
When you get on the call with the consultant, it’s important to remember that this is your loan and your decision. Don’t be afraid to ask questions and make sure you understand all the details before making a commitment.
5. Wait For a Response From The Lender
It’s time to wait! You’ve done your research, you’ve found the perfect lender, and you’ve filled out the application and discussed your needs. You now need to wait for the lender to assess your loan application.
If you’ve chosen a reputable loan company with fast customer service and excellent processes, you should only need to wait a few hours* before you find out if you’ve been approved and what your options are.
*Subject to responsible lending checks.
6. If Approved, Select The Loan Option You Prefer
A consultant will present you with loan options. Tell your consultant which option you prefer, and loan documents will be emailed to you.
7. Sign The Documents and Receive The Funds
Once you’ve been approved for an online loan, you’ll need to e-sign the documents you receive. Make sure to read over the documents carefully before you sign them. The great thing about this stage in the process is that there’s no obligation to accept the loan, so if you’re not happy with the terms of the loan or are having second thoughts, you can simply walk away from it.
After you’ve signed the documents, the funds will be deposited into your account, typically on the same or next business day*.
*Subject to responsible lending checks.
That’s all! A Quick and Easy Online Loan Process
An online loan can be a great alternative to a traditional bank loan as they are fast, secure and have affordable rates – when you choose the right lender! Loansmart is a low-cost lender that has a loan application process just like the one outlined in this article. Applying for a loan online is quick and easy, and by following the tips that were discussed, the process should go smoothly for you. Find out more about applying for an online loan with Loansmart.