Are online loans an efficient solution?
Online personal loans have become a solution for people who are in an economic bind. In many cases people prefer to apply for one of these credits online rather than go to a bank. Why? This happens because online credits are much easier to apply for and their granting is almost certain.
We can define online personal loans as a financial product that is granted by different financial entities -which operate on the Internet- so that any user can face any expense or debt that has to be paid as soon as possible.
Currently there is a whole universe of loans that a person can access from the comfort of their home. Each has its pros and cons. In this article we will talk about several of them and you can draw your own conclusions about which one may suit you.
Home equity loans are those that are requested with the home mortgage – or any other property – that the person requesting the loan decides to contribute. In simpler words, secured loans are those that are established on the basis of a personal guarantee that reduces the risks of the lender.
With secured loans, the risks to be run are lower, interest rates are lower, they are processed faster and their approval is almost instantaneous.
The guarantee that the client presents to obtain one of these loans can be a property or a vehicle. In case of default, the lender has the right to appropriate the asset.
These are the most important advantages of secured loans:
- Much more time to pay: Because the credit is granted with a guarantee, the terms to pay it are longer. Thus the person who requests it does not have to pay very high fees.
- Low interest rates: That the lender has a good that guarantees the payment of his client makes the loan conditions better. In this case, interest rates are lower than other loans.
- They do not consult your credit history: Secured loans are a viable option for people with a bad credit history. These are granted to people who have low credit scores.
- Fast approval are: secured loans are approved quite quickly without the need to present a lot of documents to do so . The most important thing is that the person has at his disposal the property documents of the good that he wants to present as a guarantee. With this, the person will have the money in their bank account in less than 24 hours.
Individual loans are nothing more than the credits – or microcredits – granted by a party, which in this case would be the lender, to a customer. People can request it for any situation: pay a medical appointment, repair their car or to compose something that broke at home.
In order to apply for individual loans, the interested party must only enter the website of the lender, fill out a form and wait for his application to be approved. In most cases, the money will be in the bank account within 24 and 48 hours.
Real estate loans
We can define real estate loans as those financial products that will allow a person to have the necessary amount to buy or rehabilitate a house or some real estate. These credits also require the endorsement of a good to be granted.
The requirements to apply for real estate loans are: identity document, last income statement, copy of the work contract, property ownership documents, among others.
Government loans are those that are granted by any state entity and in most cases are to buy homes or for entrepreneurship projects. These types of credits, in most cases, are highly politicized and many factors influence their allocation.If it is within your means to request government loans you can opt for one. They are very flexible.