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How do I get a Personal Loan Online?

Article Details
  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 03 October 2017
  • Copyright Protected:
    2003-2017
    Conjecture Corporation
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Thanks to the Internet, it is now possible to apply for and obtain a personal loan online. In some cases, the funds from the loan can be electronically deposited into your account within twenty-four hours or less. Before you attempt to apply for a loan online, it is important to compare different loan options with your particular circumstances, then choose the program that is right for you.

In preparation for obtaining a personal loan online, determine the amount of funds you need. Also consider how long you will need to repay the loan, and what type of payments you can afford. If you require a relatively small amount to deal with an unexpected expense, such as a car repair, you may find that applying for a payday loan online may work very well for you. However, if the loan amount is larger and will need to be repaid over an extended period of time, focus your attention on banks and finance companies that offer online loans.

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You may also want to determine if you prefer to go with a secured or unsecured personal loan. Secured loans require pledging an asset for collateral, while unsecured loans do not. Depending on your credit rating, you may not be eligible for a secured loan. If that is the case, you will want to focus your attention on lending institutions that provide a secured personal loan online. Make sure you have the documentation and information regarding the asset you will pledge readily available, so it can be submitted to the lender at some point in the application process.

For a larger personal loan, it is a good idea to look at the offerings from your own bank. Many banks today include a simple application process on their web sites. Since you already have a history with the bank, there is a good chance that your loan request will be accepted, assuming you meet the basic criteria. The benefit here is that you do not have to wait for a check or give a third party your bank account number.

If your bank does not offer the option of applying for a personal loan online, look to other institutions. In addition to brick and mortar banks that offer online loans, there are a number of finance companies that offer loans on a short-term and long-term basis. Look very closely at the terms and conditions associated with each loan plan that seems to be a good fit for your needs. Make sure you understand how the interest is compounded, if there are penalties for early repayment, and what happens if you are late with a payment.

Before submitting any application for a personal loan online, investigate the lender carefully. You want to make sure that the lender is legitimate, and has a relatively solid record of living up to its promises. Take the time to look into consumer reports on the lender’s business practices, financial status, and general rating within the banking community. Also look for comments, both positive and negative, left on forums by people who’ve actually done business with the firm.

As with any loan situation, there is no guarantee that your application for a personal loan online will be approved. However, if you have a decent credit rating, provide all the data requested, and have a verifiable source of income, there is a good chance the loan will be approved within anywhere from a couple of hours to a couple of days. Since many online lenders will provide the funds from an approved loan via a funds transfer, you could have the money in your account shortly after your application is approved.

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