You do get some advantages when you decide to apply for a small
personal loan online instead of going to a regular bank or financial
institution's office or local branch. By the way I am not saying you
should stop going to your banks for loan applications and do everything
online. There are always advantages and disadvantages of everything.
It's just that with the Internet you are able to carry out things a lot
faster.
With that said, when you apply for loans using the
Internet, you get to pre-qualify for the loan almost instantly which
let's you know whether the loan will be approved or not. Also, using the
Internet to apply for small personal loans saves you a lot of time in
the process. This is obvious, right? Using the Internet for loan
applications allows you the opportunity to compare various lenders
within minutes so that you can make up your mind quickly as to which
lender you want to make your application with.
You may still be
required to send your documents through the mail after the loan has been
approved online. However, this is way better than the traditional way
of doing loan applications. Here are 5 points you should take with you
when applying for a small loan online.
1. Select the best offer by
comparing different lenders. Using loan comparison websites, review
lenders based on interest rates, amount of loan offered, repayment terms
and fees. There are also other lenders who do not give loans to
applicants from some states or regions so bear that in mind.
2.
After you have selected a lender who offer acceptable terms you are
comfortable with, fill out the pre-qualification forms from their
website. They usually ask you for your full name, where you live and how
long you have lived there, annual income, employment details and
personal assets such as a home, if you have one. Some lenders will ask
you for references and the reasons why you need the loan so have those
ready just in case.
3. With a small personal loan application made
via the Internet, you might get an instant response through your email
address. However, before the loan is finally granted, the lender would
need to verify that the information you supplied on the form is true and
correct. They may contact your employer and references you provided to
cross-check with them.
4. The lender may need some documentation
from you. These may include 3 months bank statement and a copy of your
driver's licence. If you are self-employed, you may have to send your
tax returns. You can send these through the mail, fax them or visit a
local branch to give these documents.
5. Once they receive real
copies of the documents, because the small personal loan has already
been approved online, you will receive the paperwork (contract) with the
terms and conditions of the loan from the lender.
When you get
the paperwork, it is important and to your own advantage to read and
understand the terms of the loan before you finally sign and send it
back to the bank. If there is something you do not understand or are not
comfortable with, don't ignore it. Get back to them for clarification.
