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What Benefits Come with Taking out an Online Loan?

86% of South Africans turned to loans in 2016 to help get through difficult times in their lives. Whether it’s emergency auto repairs, unexpected medical expenses or an extra boost between paychecks, loans serve the community by giving people access to money when they need, fast.

It used to be that in order to get a loan, you’d need to go to a bank or other lending institution in person. This process is formal, time-consuming and for many, intimidating.

Gone are those days.

In the last decade, an explosion of reputable lenders have started offering their lending services online.

These new age, online loan products offer borrowers a variety of benefits in comparison to traditional, in-person loans.

Our team at LittleLoans has created this post to let you know what those benefits are!

1) Online Loans Level the Playing Field

When you go to a traditional lending institution for a loan, you’ll meet with a bank or loan officer. While these officers are supposed to judge your loan eligibility solely based on your credit and other tangible factors, that isn’t always the case.

Unfortunately, a loan officer may add their personal bias into the mix.

These biases may be based on your appearance. You could be judged on how you dress or even where you come from. Your eligibility may even come down to assumptions made about your character based on a vague vibe your loan officer gets from you.

Online loans take that possibility out of the equation.

With an online loan, all lenders look at to approve or deny your application is your eligibility on paper. They won’t meet you face to face so you don’t have to worry about bias’ during your review.

2) Online Loans are Fast

Traditionally, the loan getting process took a lot of time. You had to drive between local lenders, interview with a loan officer and fill out paperwork. Even when all of that was done, your application processing time could take weeks.

With online loans, the loan application process has become streamlined. You can have your cash as quickly as the same day you apply!

The reason for this is that there is a lot of competition among lenders in the online loan space. This competition is great news for you because online lenders have simplified the loan getting process considerably in hopes that you’ll choose to apply with them over their competitors.

3) Your Loan Options are No Longer Limited by Geography

Many who can’t get loans from their local lending intuitions struggle for a solution to their financial problems. Their inability to get their loan approved is sometimes through no fault of their own given that some communities only have one or two lending institutions that have unreasonably strict standards.

With online loans, you can apply to lenders all over South Africa from the comfort of your home. So, if you live in Johannesburg and can’t get loan approval, you can apply to lenders in Cape Town and beyond to increase your chances!

4) You Can Apply to Multiple Lenders with a Single Application

Traditional loans mean physically going into every lending institution you want to ask to borrow from. Once you’re called in to meet a loan officer, you need to fill out an application and wait for approval. When you’re done, if you’re not approved or don’t get favorable terms, you have to transport yourself to another lending institution and repeat the process.

This can be inconvenient and ultimately, makes the online loan process unnecessarily difficult.

Many online lending intuitions buck this trend of “multiple lenders = multiple applications” by offering you the opportunity to fill out a single application and get matched with multiple lenders.

This drastically decreases the amount of time you spend finding the perfect loan.

5) Online Loans are 100% Safe and Secure

The main criticism against online loans is security. The concern is understandable given that as the internet grows more advanced, so to do internet threats.

Rest assured that every reputable lender and lender matching service online takes your security and privacy seriously.

With an online loan, the personal information you supply on forms is secured via SSL encryption. SSL encryption is the industry standard when it comes to websites keeping customer’s form information out of the hands of possible threats.

On top of the encryption your sensitive information will benefit from, the online loan company you’re providing information to will never share your information with other companies without your permission!

Bottom Line – With an online loan you can be sure that your information will only go where you want it to go. That means you get all the advantages of online loans without any threats to your security.

Summarizing The Benefits of an Online Loan

South Africans rely on loan products to get them past difficult times in their life. Getting these loans through traditional means can be hard and time-consuming. This is because you need to go into lending institutions, fill out paperwork, interview with loan officers, and more.

With online loans, that slow process gets terminated.

An online loan matches you with multiple lenders by filling out a single application from the comfort of your home. An online loan is 100% safe. It can also significantly increase the likelihood you’ll be approved since you’ll have access to more lenders.

If you’re a South African citizen who is looking to get an online loan from a reputable service, look no further than LittleLoans.

LittleLoans specializes in providing the people of South Africa short-term loans ranging from R500 – R8000. Our application is quick, easy and can get you the money you need as quickly as the day you apply!

To get connected with the loan product you need today, fill out our quick application online.

For more information on loans, read more on our blog.