With the rise of the use of the internet, FinTech lenders are becoming popular all around the world. They are usingonline technology to provide funds to businesses and individuals. They offer short-term loans that have a short and easy application and quick turnaround.
Many people are still skeptical about borrowing from online lenders. They fear their safety and don’t want to end up in online financial scams. In this blog, we will discuss the reasons to borrow from online lenders and ways for you to avoid getting caught up with shady online lenders.
What Is Online Borrowing?
Online borrowing is a way for individuals and businesses to borrow funds anytime from anywhere. Online lenders offer low interest loans and do not require any assets as collateral against the loan. They also provide convenience and fast approvals.
With online borrowing, you can take a loan for any duration between 3 months and 3 years. Most online lenders offer small amounts and do not exceed $1 million. Generally, online loans are for less than $100,000 and given for a year or less. The amount you can borrow through online lending depends on the lender’s assessment of your ability to repay the debt.
8 Reasons to Borrow from Online Lenders
1. Ideal Way to Borrow in Emergencies
Yes, we all plan and budget our expenses, but sometimes, unplanned expenses that are impossible to foresee may arise. At times, the need for funds is so urgent that you cannot afford to wait until you get approval from a bank or a credit union for a traditional loan. In such cases, online personal loans are apt for emergencies since an online lender approves and disburses a personal loan in just a few hours. Suppose your car broke down in the middle of the road and now you have no way to drive to work the next day. You can apply for an online loan, get money in as little as 4 hours and get your car fixed!
2. Easy Access and Application
Online lenders such as CashOnYourMobile have fast, easy, and paperless application processes. All you need to do is enter a few necessary details such as ID proof, contact details, employer name, and contact and bank account details, and you are set! The application form is available online, and you can fill it out and submit it in as little as 5 minutes.
3. Low Interest Rates
Because most personal loans are unsecured, banks charge a high interest rate due to the risk of unsecured loans. On the other hand, many online lenders and FinTech companies offer low-interest personal loans accessible to a broad range of people at an interest rate much lower than what the traditional banks charge.
Convenience is one of the main reasons to borrow from online lenders. It makes an online personal loan a preferred choice. Gone are the days when you had to stand in lines at the bank for hours to get your loan approved. The loan application process is online, short, and accessible from anywhere. You don’t need to pay recurring visits to banks or credit unions to talk about your loan application status with their employees.
5. 24/7 Service
Emergencies do not choose a time; they just occur. They can even arise in the middle of the night when the banks are closed. Suppose it is Saturday night, and you are caught up in an unexpected expense that you need to pay off. Banks are closed on Sunday, and you cannot afford to wait till Monday to apply. What you can do is log on to CashOnYourMobile and apply online to get instant access to money!
6. Time Saving
With traditional bank loans, you frequently need to follow up and wait for several days to get your personal loan approved. On the other hand, with online personal loan lending websites, the loan application and approval processes are much quicker and easier! This can help save time, money, and effort.
7. Several Loans in One Place
Online lending platforms are changing how different financial services are being offered to customers all over Australia. There are now many online lending platforms that have been successfully offering cash loans, business loans, unsecured personal loans, car loans, payday loans, caveat loans, and several other loans all in one place. The number of options available is quite impressive!
8. Credit Checks Are Rare
One of the biggest reasons to borrow from online lenders is that credit checks are rare! You can quickly get a loan even if you have a low credit score or no credit history at all. Many online lenders do not conduct credit checks, so even if you have bad credit, you can still apply for a loan online.
How to Avoid Shady Online Lenders
Do Not Pay Upfront Fees
Trustworthy online lenders don’t require any fees upfront. The “advance-fee scam” is commonly used by scammers who convince you to pay a fee for them to process your application. Some loans, such as large home loans, cost money while applying, but even that cost is disclosed on the official documents. If you’re getting a short-term personal loan, payday loans, or a car loan, avoid paying any upfront fees.
Don’t Fall for Guaranteed Approval
Lenders are not in the online lending business to lose their money, so they will never guarantee that they will lend to anybody. There is no doubt that some lenders are willing to take on more risk than others, but they still need to know something about your finances before promising approval. If you have a low credit score, how can a lender be assured that they will get their money back? Lenders who accept just about anybody are often super sneaky. They find a method to earn high profits in exchange for taking significant risks or steal money or data.
Avoid Lenders with Confusing Names
First impressions are super important, and if the name sounds shady to you, the lender probably is too! Listen to your gut. Don’t opt for lenders with the word “Federal” or “Provincial” in their names. This is just a sneaky way for them to declare that the Government endorses them. Copying the name of a large and famous bank with one or two letters changed is another devious tactic.
Borrow from CashOnYourMobile Today!
Have we given you enough reasons to borrow from online lenders? Go ahead and apply! Reliable and dependable online lenders, such as CashOnYourMobile, have safe and secure application processes. They connect you to lenders that will suit your financial needs so you can solve your financial emergencies instantly. To borrow from CashOnYourMobile, visit their website today and fill out the application form by clicking here.