Category: Personal Loans
Online loans have become the latest fad. Many people love them due to the benefits that they come with. Unlike the traditional loans that require you to wait for weeks or even months before you receive them, Online loans are released in your account immediately the loan lender certifies that you are qualified.
How to get the online loans
Getting the loans is easy. All you need to do is to visit the website of the lender and make your application. To increase your chances of getting the loan carefully read through the requirements required and provide them.
The cool thing is that online loans are one of the easiest to get. In fact, when you apply for them, the lender will give you the loan even if you have bad credit. All the lender wants to know is whether you can afford to pay. To prove that you can repay the loan once it’s given to you, you should provide a bank statement or proof of employment.
Benefits of online jobs
As mentioned above, many people are going for these loans due to the comfort that they come with. Some of these advantages include:
Ease of access: This is a no brainer. As mentioned, you don’t need a stellar credit score to get these loans. As long as you prove that you can afford to repay the loans. You are ready to go. This is unlike with the traditional loan lenders that will require you to have a good score to get the loans.
Also, you don’t have to travel to your bank to get the loans. All you need is a computer and internet connection, and if the lender certifies that you can repay the loan, he/she will send you the money to your account instantly.
Payment options: Unlike with traditional loans where the repayment of the loans is decided by the lender, with online loans you agree with the lender on the amount that you will be repaying. In addition to this, in the event you lose a job, you can contact your lender and adjust your repayment.
Factors to consider when getting the loans
When you are borrowing the loans, you need to consider a number of factors for you to get the right ones. These factors include:
Amount to borrow: How much money will you be borrowing? The amount allowed differs from one lender to another. You should do your research and find a lender who will give you an amount that you will be comfortable with.
Repayment period: This is the amount of time that you need to repay the loan. Again this differs from one lender to another. The cool thing is that you can reach an agreement with the lender and settle at an amount that both of you are comfortable with.
Interest charged: The loans are known for their high interest, but this doesn’t mean that you have to pay high interests all the time. Before you take a loan, scout for lenders with the best rates.
If you have some personal needs to cover, you can go for a personal loan. There is a defined term for which these loans are granted. You have to pay off the loan as soon as the term is over. If you want to take out a personal loan, make sure you consider 9 things that are given below.
1. Opt for the best deal
You can use this type of loan for a myriad of purposes. You can use it to make an investment or consolidate the debt on your credit card, for instance. You may also want to read up on other types of loans to meet your needs.
2. Work the best lender
Some good sources include online lenders, credit unions and banks. The terms and the rate of interest may be different based on the lender you opt for. Therefore, it’s better to shop around and look for one that can cover your needs.
3. Don’t ignore the fine print
Make sure you know the loan terms. Don’t forget to go over the fine print. Based on your budget, you should decide whether the repayment terms are fine with you. Keep in mind that you may have to pay late payment fees as well.
Since lenders get paid in the form of interest, you may have to pay some fee in case of late payments.
4. Your credit rating should be accurate
The interest rate associated with your personal loan may be different based on your credit score. For example, if you have a bad credit score, you may have to pay 20% more in terms of interest. Therefore, it’s a good idea to ensure that your credit rating is accurate.
5. Consider the origination fees
Although you will find some lenders offering lower rate of interest, keep in mind that they may charge a special fee that may increase the interest rate. Therefore, it’s better to use a lender with a high rate instead of one who may add an origination fee.
6. Consider your limits
This is important. Before you apply for a loan, don’t forget to get a better idea of your financial situation. In other words, you should only go for an amount that you can easily pay off.
7. Consider the automatic withdrawals
During your research, you may find that some lenders are ready to offer incentives if you allow them access to your bank account for automatic withdrawal of your loan payment each month.
If you find it hard to make your payments, you may want to take a look at the other options that you may have. Can you make changes to the loan terms? Is the lender ready for arbitration?
9. Variable rate or fixed rate
Can you choose a fixed or variable interest rate on your loan? Usually, a variable-rate loan allows you to begin with a lower interest rate, but it will involve risk as well. With the rise of the interest rate, the variable rate will also go up. As a result, you will have to make higher monthly payments.
So, you may want to consider these 9 tips before you apply for a personal loan.
People utilize personal loans for a number of reasons, such as consolidating debts, paying for a medical debt or for costly auto repairs.
But there is something else the average consumer needs to know: a personal loan can be used for your small business.
Despite the label, a personal loan could just be what is needed to maintain your business. The personal microloan can be used for certain expenses such as:
• Equipment (things like printers, tools, copiers, manufacturing equipment, cubicles, etc.)
• Office space (either to purchase or rent)
• Marketing and advertising (digital, promotions, print, etc.)
For any type of business expense, if your business does not have the extra capital but needs cash to grow, then a personal microloan is a feasible option.
Small Business Loan vs. Personal Loan
Most small businesses that require necessary funds in order to grow their business typically search for a small business loan. This makes sense as a small business loan is generally beneficial to the small business owner.
In certain situations, the small business loan assists the business owner to purchase large ticket items, such equipment, inventory, or raw materials. However, just because the small business loan is the industry standard, it does not always make it the correct solution.
The biggest problem with a small business loan is the stringent requirements. Not only does this hold true with the eligibility requirements, but it also comes into play during the application process. Here are some of the biggest challenges:
• Lengthy application process that can eat up hours of valuable time
• Documentation requirements, such as providing a business plan, tax returns, references, and financial data
• It can take a long time to receive the funds (even after you get an approval), as the entire process can take up to 90 days
• There are as many as seven different types of small business loans… choosing the right one for you could take some time
Although it’s common to initially assume that a small business loan is the best choice, you may find that these requirements are difficult to meet or will take longer than you want to get your business moving.
Is a Personal Loan Application Process Any Better?
The short answer is that an application and decision regarding that application can be made by the company offering the personal loan within one day.
With a personal loan, you don’t have to jump through nearly as many hoops. Instead, its’ much easier to acquire a loan in a timely manner (and without the hassles mentioned above).
Some of the primary benefits of a personal loan for business use – especially compared to a small business loan – include:
• Simplified application process that can be started online or over the phone within a matter of minutes
• Fewer documentation requirements
• Same day decision (not always but most of the time)
• Fewer complications, with the main decisions being the repayment schedule and amount to borrow
The simplicity and convenience alone is reason enough to learn more about using a personal loan for your business.
Making a Final Decision
that you understand that a personal loan can be utilized for your
business, you need to decide if this is the right financial solution for
your company at the present time.
As you compare this option to a small business loan, ask and answer the following questions:
• How do you plan on using the funds?
• Do you need the money in the immediate future, or can you afford to wait?
• How much money do you need to borrow at the present time?
• Have you collected all the information you need for the application?
• Which type of loan is most affordable over the long run?
By answering these questions, while also consulting with a lender for each type of loan, you’ll find yourself in a position to make an informed and confident decision.