You use your computer and mobile devices for everything, why not applying for a loan?*
When you need fast cash, you can apply for a personal loan, which you can do without sending a piece of paper. Since the application process for personal loans is increasingly becoming digital, online lending is speeding up access to necessary funds. You can often apply and receive your loan in minutes, without even leaving your smart phone.
Here are three reasons why people prefer online personal loan lending:
1. People are always connected online
If you're like many people it's hard to put down your personal devices. You no longer have to be a techy to be attached to your personal devices. It's easy to get used to the convenient online access electronics offer, especially when it comes to managing your finances. According to a 2014 Federal Reserve Bank survey, almost three-fourths of consumers accessed online banking through a desktop, laptop, or tablet computer in the last 12 months.
Overall, online banking has become an essential means of transactions in recent years. The Pew Research Center revealed a little more than half of all adults in the U.S. used online banking in 2013. This percentage is higher among Internet users, with 61 percent of Web surfers utilizing digital banking.
Since younger Internet users are more likely to bank online, personal loan lending could increase among the millennial generation. Of the age groups surveyed by Pew Research Center, 18- to 29-year-olds were more likely to bank online (67 percent).
As lenders switch to a digital platform, they could engage with consumers more effectively and stay connected with them. An EY survey found 28 percent of customers were very satisfied with their own personal loan account or service. However, this number may increase as lenders and customers interact online.
Online banking has become increasingly popular with the adoption of mobile devices.
2. There are key advantages of sending documents electronically
Compared with filling out paperwork for a personal loan, online personal lending is a more streamlined process. Instead of spending time getting to the bank, borrowers can log into their personal device and within a few clicks, have a decision in hand. Not only do you save time with an easy-to-use electronic process, you can also prevent the hassle of dealing with documents.
Some lenders may require several documents for you to apply for a loan, including various items showing proof of income or identity. Additionally, some providers having entirely online application processes means you don't even have to fax documents over to the lender.
An online loan application process eliminates unnecessary paperwork.
3. Consumers need fast cash even more quickly
Lenders understand you need cash now to avoid late payments on your rent, utility bills or other credit obligations. However, a paper application process may delay the time it takes for approval. Not only is an online application process quicker than filling out an application at the bank, it can also give you access to the money you need faster.
Some lenders offer online application processes that give you a decision in minutes. In contrast, traditional financial institutions may take months for approval. By then, you might have already missed a payment. After giving approval, lenders may deposit money into your account in as soon as one business day, depending on when you initially applied.
Technology is also making it easier for you to repay your loan. In the future, there might also be more opportunities for lenders to engage in mobile apps for personal loan access and repayment. The Federal Reserve survey also stated people age 18 to 29 implemented mobile payments in the past 12 months, higher than older generations. About 36 percent of mobile payment users belong to this age group - a greater average than the 27 percent of all mobile phone users.
With technology paving the way for online banking, lenders of personal loans are more likely to offer services to improve customer experiences and overall satisfaction.
*This article has been prepared for general information purposes only. The information presented is not legal, financial, tax or accounting advice, is not to be acted on as such, and is subject to change without notice. Credit approval is subject to LoanMe's credit standards, and actual terms (including actual loan amount) may vary by applicant. LoanMe requires certain supporting documentation with each new application. If you have any questions regarding this, call us at 844-311–2274. California loans are made pursuant to LoanMe's California Department of Business Oversight Finance Lenders Law License #603K061. LoanMe also offers loans in certain other states which may have higher minimum loan amounts. Copyright © 2016 LoanMe, Inc. All rights reserved.