Getting a loan once required many steps on your part. Even today, you may find that applying for a loan through your local bank or credit union takes a lot of time. Some of these lenders have so many requirements that you must return a few times or speak with reps over the phone to ensure they have all the correct information. Online loans help you get the money that you need much faster. While you may still need to talk to someone over the phone, you can complete most steps through your computer. So before you apply for an online loan, check out some of the reasons to get one.
Low Rates
Every time you apply for a loan, you need to share some information like your social security number. The lender uses that info to check your credit and see if you qualify for one of their loans. Online loans often have lower interest rates than traditional loans do. Your bank will usually compare rates from across the country to see what rate you will pay. It would be best if you did some work to make sure you choose a lender with a reasonable rate. Online lenders use fewer factors to determine your rate and often come out as the lowest option.
Convenient Repayment Terms
Another reason to choose online loans is that they offer convenient repayment terms. According to Lantern by SoFi, online small business loans are available for up to $1 million and give you three years or longer to pay off your balance. In addition, some lenders have a fixed repayment schedule where your monthly payments are equal to two percent of your total loan. If you borrow $100,000, you pay $2,000 every month. This helps you avoid any hidden surprises and ensures you can afford your loan.
Fast Funds
Have you ever needed a loan to pay an unexpected bill and found that it would take months to get the money you needed? Online lenders are much faster than traditional lenders. When you apply for a loan today and meet all of the requirements, you might get access to your funds in as little as 24 to 48 business hours. So instead of giving you a check that you need to deposit and waiting for it to clear, you get your money almost instantly. Online lenders can deposit your funds into your personal or business bank account.
Outside of Business Hours
Many people use online loans because they need money outside regular business hours. Many banks are still only open during set hours. They may not open at all on the weekends or only have limited hours on Saturday mornings. Online lenders never close. You can apply for a loan on the weekend or in the middle of the night. You can email any required information outside of standard business hours. With all the great reasons to choose an online loan, you may never go through a traditional bank again.
