If you are trying to apply for a personal loan online, it is crucial to understand the different options available. You can choose from the business loans, the home loans, the auto loans, the student loans and the personal loans. The application part for any of these loans are almost similar when you opt for the online route.
Secured or unsecured
The first and the foremost priority is to make up your mind on the type of loan you want to avail. Will it be a secured one or an unsecured one, is what you need to decide. If you apply for a secured loan, you need to provide a type of collateral as a necessary security for the loan. The collateral can be any asset you own. It may be your car, private property (gold), house, land, etc. The collateral is considered depending on the valuation of it in context to the loan amount. The best part of a secured loan is the low interest associated with it. Also, you can select your option in regard to loan repayment terms and tenure.
If you opt for the unsecured loans, there would be no collateral deposits to consider. However, such loan schemes, come with higher interest rates. Also, you may not be able to choose the repayment terms. It would be decided by the creditor.
The eligibility part
Who all are eligible for online personal loans? It may sound surprising, but almost anyone (even the ones with poor credit scores) can opt for personal loans online. The application process is somewhat less complicated and online creditors usually take a lenient approach when offering loans to clients. There are fewer criteria to fulfill when it comes to personal loan application through online credit agencies.
The loan tenure
The loan can be given for a maximum duration of 60 months and a minimum of 12 months. Although not much prominent, customized tenures could be allowed.But, it depends entirely upon the credit agency. Also, it would depend on the criticality of the case.How many days it takes to disburse the loan amount is a thing to consider. In the most common scenarios, it would take not more than 7 days from the date of loan appealing, to get the approval. Some online lenders even offer approval, within 3 days of submission of the application form. Once approved, the loan amount would get transferred to your bank account within 24-48 hours.
Although you cannot guarantee 100% success to avail loans from online lenders, the chances are high for anyone, with minimal documents and extremely low credit report. Also, the loan approval time (the processing part) is short and promises quick result upon the submission of a properly filled application form. However, you must consider the reputation of the credit counseling agency before approaching it. Go through the reviews to have a clear understanding about their work process and options
Author Bio: Tim Luxemburg is a financial analyst and a blogger. His blogs on online personal loans are quite effective in developing a good understanding of debt consolidation options and are the best ways to get rid of financial instability through different loan schemes.