You may think that you have everything financially covered when, unexpectedly, you have a car repair you need to make. You use your smartphone to come up with a way to pay for it. You come across an online platform that allows you to apply for a personal loan and get the money within a day. The platform promises to approve you in minutes, has easy installments and convenient repayment terms. How can you know if you’re getting a good deal from an online lender? What are some benefits to getting an online loan?
The biggest reason people are turning to the Internet for loans is the convenience they provide. You don’t have to provide near as much documentation, and even if you have to, you can still apply for the loan in minutes by uploading them to the server. Easy to do from your home or office; no need to visit your local bank.
Rapid Turnaround Time
Online lenders deliver quickly on their loan – usually within one business day. This means if you have an emergency where you need the money right away, you can get it quickly after you have been approved.
CIBIL Score Still Matters
Online lenders are much like banks in that they do care about your CIBIL score and your creditworthiness. It may seem like, in all the hype, that they don’t consider that, but they really do. Therefore, if you have a low score, your personal loan application could be denied.
Unusual Credit Assessment
Another reason people go to online lenders is the parameters they use for lending consideration. A P2P lender may look at your social media to get an idea of what your personal networking looks like. They’ll use it to see what your career is like and if your career will advance any further. These lenders look at different parameters to determine your financial standing and creditworthiness.
Your financial health is just as important as your physical health, so make sure you take care of it with good credit habits.