Can I take out a personal loan online?On March 28, 2019 by Clinton Whiteaker
If you are planning to borrow money online, but you are not familiar with the various options, it is also less easy to determine which loan best suits your personal and financial situation. Before you make a final decision, it is therefore important to first find the correct information. You can of course use the internet as a source to beat all your questions. If, after some own research, you still have questions about securely borrowing money online, you can of course always contact the lender of your choice. In all cases you can of course request a free loan offer. The answers obtained and the information gathered with regard to the loan will be able to help you make a responsible choice.
What is an (online) personal loan?
A personal loan is a very popular way to borrow money. This loan form is characterized by:
- a fixed duration,
- fixed monthly payment terms,
- a fixed interest,
- a fixed duration.
Not only can you take out a personal loan from a physical lender today, but you can also choose to do business with an online provider of this loan form.
Taking out a personal loan means that you have a pre-agreed amount of money. The term of such a loan is therefore fixed from the outset, so you know exactly at what time you paid off the total debt. Moreover, when you have taken out a personal loan, you will receive the full loan amount in one go into your bank account. After that, you must pay a fixed amount in installments and interest to the lender each month for the duration of the term that has been agreed in advance. As a rule, the duration of a personal loan will be between 6 and 180 months.
(Online) personal loan and fixed monthly payments
The monthly repayment terms that are linked to an (online) personal loan are agreed in advance, so you always know exactly what you have to pay each month. In other words: you always know exactly where you stand and what you should take into account every month. This usually makes it a lot easier to fit the repayments in your budget.
(Online) personal loan and fixed interest
A personal loan, regardless of whether you have taken out it with a physical or online lender, will have a fixed interest rate. This interest is generally higher than that of a revolving credit, but on the other hand you have more certainty because the interest cannot be influenced during the term by all sorts of changes in the financial markets. The moment you take out an (online) personal loan, you know exactly what you will expect and what you should take into account. After all, the costs are all determined in advance and even the final borrowing costs are known in advance.
Is an (online) personal loan something for me?
A personal loan, whether you connect it with a physical lender or have chosen to take out this loan from an online provider, suits you the moment you:
- need extra financial leeway to be able to make a sustainable expense,
- know exactly what the costs of the intended loan target are,
- would like clarity about the progress of the loan,
- would like clarity about the costs that this loan will entail.
In general, potential borrowers are advised to opt for an (online) personal loan if they want to arrange financing for expenses such as:
- the purchase of a (new) car, motorcycle, boat, caravan, kitchen, television or other durable consumer goods,
- the repayment of other expensive loans that are still running.
Advantages of an (online) personal loan
Taking out an (online) personal loan brings a lot of benefits. The most well-known advantages of this loan form are:
- the fixed loan sum: you borrow a fixed amount of money,
- the fixed interest rate: it cannot fluctuate during the entire term of the loan so that you know exactly where you stand,
- the fixed term: you know exactly at which time you paid off the entire loan (together with the loan payment),
- it is a one-off loan: you cannot be tempted to borrow extra money in the meantime and thus make your final borrowing costs even higher.
Disadvantages of an (online) personal loan
In addition to the aforementioned advantages, an (online) personal loan also has a number of disadvantages. The disadvantages of an (online) personal loan are:
- the limited flexibility: in the meantime you cannot, as with a revolving credit. Withdrawing extra money
- a somewhat higher interest rate: the certainty of the (online) personal loan obviously has its price,
- any penalty interest: you may pay a penalty if you want to repay money early.
Securely borrow money online, is that possible?
The moment you want to take out a loan online, it is essential to know how this method of borrowing money works. It is also important that you know how to ensure that you can take out a personal loan online in a responsible and safe manner. Borrowing money, regardless of the type of loan you want to use for this, must always be done responsibly.
In practice, this usually means that you first have to find out which reliable lenders are eligible if you want to take out an (online) personal loan. You can do this by looking up online reviews and customer reviews and reviewing them carefully. Of course you have to take extremely positive and extremely negative assessments with a pinch of salt and preferably use the mid-sized motors to make your own judgment about a certain lender and the loan forms it offers.
The moment an online personal loan provider starts imposing abnormal requirements or calculates particularly high interest rates, it is of course wise to immediately abandon a deal and look for another option for the solution to your financial problem.. Because of fraudulent lenders, countless ignorant people have got even further into the (financial) problems. However, by listening carefully to your intuition, you can prevent yourself from becoming a member of this group of borrowers. An offer that seems too good to be true, this is usually also the case and should therefore be rejected immediately.
Apply directly for a personal loan online
One of the most important benefits of an online personal loan is that it can offer you additional security. Before you place your signature under the loan contract, you know exactly how much money you borrow and also at what interest rate it will happen. In addition, an online personal loan offers you clarity about the precise duration of the term and the amount of the monthly repayment terms. By opting for this loan form, you will not soon be faced with unpleasant surprises.
By means of an online personal loan you can above all match the expected lifetime of the spending objective, such as a car, with the duration. The maturities vary from (online) personal loans generally vary from 6 to 180 months. By choosing an online personal loan, you can save yourself a lot of time and effort because you can not only easily request the loan from your own computer, but also the loan. In other words: you no longer have to pay a personal visit to a lender and therefore you do not have to take a suitable moment together with a financial adviser to then discuss a thumb file with him or her.
Before you take out a personal loan, you can of course also request a quote online. The lender will then send you a completely non-binding offer within a very short period of time (via regular mail and / or your e-mail address, or sometimes even show it on your screen. Moreover, requesting an online offer is done within a few minutes and you can determine yourself from which lender you will apply for one or more and which term you prefer.
You can not only take out a personal loan with a physical lender, but also with an online loan and loan provider that has included this type of loan in its range. Just as with any other loan application that you send out, it is extremely important that you know exactly what you are doing. Only then will you be able to find the most advantageous loan. In practice, this usually means that you have to make good comparisons between personal loans from different lenders.
However, if you are going to make these comparisons online, this will cost you much less time and effort than if you have to pay a visit to a number of physical lenders and explain your loan application. Moreover, many online lenders often offer potential borrowers the opportunity to perform a loan simulation online and / or to request a quote if they want to request a personal loan.
If you are applying for an online personal loan, you do not have to leave your house. After all, the entire procedure, from the request for quotation to the final request for the loan, can take place digitally. This is not only a lot less time-consuming, but certainly also much easier. This is because most people have to deal with an overloaded agenda and often see little hope in having to wait long for an appointment to be able to submit a loan application for a personal loan to a financial adviser who is also very busy. Online personal loans can also save quite some money in this area: time is, after all, valuable and generally better, or in any case more fun, to use than in a lender’s office.