Online loans can be accessible from just about everywhere and at any time.
When it comes to traditional lenders, they’ve now caught up and offer quick and easy online lending services just as the alternative credit providers do.
Quick & convenient online loans in the UK
There are many different loans you can apply for - almost as much as there are companies that offer online loans. Online loans have incredible benefits as compared to traditional loans which are applied for in-person or through a business branch.
That being said, these days all banks and traditional lenders have upgraded their online services and also offer their customers quick and easy online loans and services. You can easily log in to your online banking profile and apply for a loan.
Advantages of online loans
- Online loans have a convenient application – with an online loan application, you have a chance to apply for a loan anywhere and anytime. All applications are completed through the lender’s website, complete your online loan application, and receive your cash quickly and conveniently.
- Flexible, affordable loans online – applying online lets you pick a loan amount and loan term that’s right for you. You also get a chance to decide on a flexible loan that fits your needs right from the palm of your hand.
- Quick access to safe and confidential borrowing – with an online loan you do not have to answer a series of questions about why you need a loan in the first place. Online loans grant you quick access to the funds you need safely and confidentially, and you won’t need to provide reasons as to why you need an online loan.
- Save money by comparing loans online – lenders that offer online loans are usually featured on most loan comparison sites and you can use these listings to compare loans and find a great deal.
Benefits of online loans
- Quick approvals – online lenders can tell you more or less instantly whether or not you’re approved, how much you can borrow, and what your payments will look like. With most lenders, you will get feedback within a few minutes.
- Better rates – online loans always often charge less than you’ll pay elsewhere. Online lenders operate differently from banks and credit unions with physical branches, and they don’t face the same regulatory costs.
- Easier approval – online loans are also able to approve lower credit scores and use “alternative” information to evaluate your creditworthiness.
Traditional loan providers
A traditional loan is a loan offered by small businesses, societies and banks that can be paid over a fixed period of the term. When applying for a traditional bank loan, you ought to go to the offices to do so.
The loan application can only be done when you meet at the lender’s official branches, unless they have upgraded to an online system and you can apply from you mobile or a PC simply by logging in to your banking profile.
Things you should know about traditional lenders
They acquired funds from depositors and investors and then made available as interest-bearing loans for commercial and personal use. All traditional bank lenders are subjected to underwriting requirements that remain much the same from transaction to transaction.
Although traditional lender generally charges a lower rate of interest than other lenders, they are not willing to make high-risk loans without significant collateral. In this sense a traditional loan is a little more difficult to qualify for than an online loan from an alternative lender that will be willing to focus more on affordability rather than credit rating.
Advantages of traditional loans
Most traditional loans are more likely to be business-related. And it is not as complicated as it seems to get a traditional loan. When applying for a loan from traditional lenders, you are mostly required to do a face to face loan application.
Those loans are usually accompanied by low-interest rates, offer tax benefits and allow you full ownership. When your business is in a good position applying for a business loan from a bank could be more beneficial than alternative funding based on the range of features and benefits mentioned.
Benefits of traditional loans
Traditional lenders offer loans that are exactly as those found online and even better. Although you have to visit a bank for a loan, when you are there, you can also get approved instantly and receive your funds within a few minutes or hours.
They offer better rates as well you can also negotiate a repayment term that is most suitable for you. This is particularly true for those who are applying to the bank with which they normally bank as they already have a range of financial information on you or your business on which to make a decision.
Similarities of traditional & online loans
When we are not accounting for the fact that you should travel to the bank, they both offer loans with affordable interest rates. They require the same documents and before granting a loan and both options require a credit check. Some traditional lenders offer loans for people with bad credit. Both traditional and alternative lenders offer short-term loans and long-term loans.
The differences between these two options
Online loans can be accessible everywhere and anytime but when it comes to traditional lenders it is slightly different. While most traditional lenders have online loans available they still have stricter lending criteria and their processes focus on credit scores a lot more than affordability.
The only time you get to apply for a loan that is large and secured, is when you visit the bank. Usually, banks are closed at night and even on weekends which leads people to turn to online lenders.
Quick & convenient loans
Loans have not changed but they are more accessible to people than they were before. Currently, you can get loans at the tip of your fingers by simply running a search for credit providers or by using a loan comparison site.
Sometimes when we need to apply for loans, such as when we are pushed by an urgent matter, and the online loans are a great options since they are always available and you can apply for them at your convenience.
Whether you are tech savvy or not, applying for a loan online makes a lot of sense and will be easier than visiting a bank or lender’s branch. It also removes the need to print and fill in paperwork which is not only more convenient in terms of time but also reduces waste, which is great for the planet!