The Internet is so popular now so it’s no wonder that many users want to get online loan without stepping out of their room. Let’s learn more about online loan.
What is the procedure?
It means transmission of money (e-money) to borrower from bank. Such money is virtual but it can be easily used. For example it’s possible to buy any item by using online credit card.
Online loan is a good choice for transactions on the Internet and a bad one for cash payment. The loan usually offers not large amount of money and credit payment period is also short. Mentioned loan is given at high interest. To get such loan one should fill in a form with private personal data, so credit history cannot be hidden. Required information is different at various sites. Documents may be signed electronically without using fax (as Speedy Cash offers).
There is no need to go to bank and to stand in a line. Online application for credit may be filled in at any time and a bank open hours are not important. Application is usually considered within few minutes.
It’s possible for users to apply for credit at different sites. When applications are approved they can choose the best credit conditions.
User gives his personal data and there is no guarantee that it will not be used by potential lenders in future. So they may send e-mails and call user to offer their services.
Interest rate is much higher for online loan because there is much more risks for lender during money transmission on the Internet. Creditor has minimum guarantees for paying back his money. Lender cannot sue a debtor because a package of necessary documents is absent. The best thing he can do is to spoil debtor’s credit history.
If user wants to get large amount of money, additional documents may be required. While applying for online loan in such a case, the system may require secondary guarantees represented by passport, driving license, pensioner ID card. These documents should be scanned in full color. Reliable guarantors (people with positive credit history) may also be required by the system. E-pledge is also a secondary guarantee. Highly visited websites may be pledged.
The largest internet payment company PayPal offers online loans. The annual percentage rate on PayPal credit is 20%. The minimum interest charge is 2 USD.
This reliable company will consider an application within seconds. Identity is verified by date of birth and the last four digits of social security number. PayPal protects its users from tampering and they are not responsible for such unfortunate situation.
Money from PayPal credit may be used at online stores such as E-bay and many others.