As internet has touched all aspects of modern life, banking sector is also not untouched by it. Banks and various other finance companies resort to what is called E-commerce. As the functioning through internet is fast, reliable, saves time and effort, it is also preferred by customers and borrowers.
Online loans also have become a handy tool for banks and other lenders as well as borrowers. There are many reasons for this.
The main reason is saving time. Just imagine how much time a borrower has to invest while availing loan offline. He has to travel to the office of the lender wading through modern day city traffic. Once reaching the office, he has to meet the designate loan officer, explain the need for loan, fill up various forms along with submitting various documents and then wait for days and weeks while his loan application is scrutinized.
But availing loan online is very simple. One has to just fill up an application form online which hardly takes few minutes. The details are then processed by the lender and forwarded for review, to check credit worthiness of the borrower and his credit history. The lender then offers borrower various loan options and then lets him know the monthly installment he has to pay and any other fee if applicable. This saves a lot of time and effort on part of borrower.
Another advantage of online loan is one can avail advice and other information provided by various experts and by the lender’s website which help in deciding various aspects of loan. Some lenders provide online loan calculators which can help the borrower to calculate how much monthly installment he or she would has to pay.
The main disadvantage of online loan is security of information provided by the borrower. This could result in stealing of information, fraud and other online risk associated with such transaction.
So, one must weigh all the pros and cons of availing loan online. On one hand a borrower can access many number of lenders through internet, it also provides lenders with easy access to the borrower. It provides borrower many options and saves lot of time and effort and for lender, it cuts down cost considerably. But all said and done, unless borrower is net savvy, he should not take the risk of online loan as it may result in compromising his personal data and can lead to online fraud.