Most people these days use the Internet to search, apply, and purchase different products and services. And the same goes for bank loan applications. You can apply for loan online right from the comfort of your home.
And it is not just about comfort when it comes to filling online loan applications but you can also get great loan offers at your fingertips. But do you know what it takes to make a successful online application for a loan? Don’t worry! This blog post will give you all the details about the online loan application process.
What types of loans are available online?
In South Africa, you can find online loan offers for the following types of loans:
- Short-Term Loans: This type of loan can be easily applied online. You can borrow only small amounts when applying for short-term loans. These loans have higher interest rates, and thus, need to be paid off quickly. Payday loan are a great example of a short-term loan.
- Secured and Unsecured Loans: Secured loans come with low-interest rates and require you to provide a property as collateral. On the other hand, unsecured loans have higher interest rates and don’t need collateral which makes them risky.
- Debt Consolidation Loan: This loan assists you in paying all your existing debt. This way you are left with just a single loan account that is easy to manage and payback.
- Study Loans: These loans are meant to assist your education. Study loans have different structures and lower interest rates as compared to personal loans.
- Motorbike Loan: You can apply for a motorbike loan if you want to buy a motorbike in South Africa.
- Car Loan: If you intend but a car and need financial support, car loans are the best way.
Checklist to Apply for loan online
Have you finally decided to apply for a loan online? How do you know which loan offer is best for your needs? Below is a checklist that will help you efficiently comparing different loan offers and get loan online.
- Loan Term: You can choose a loan term between 6 months and 72 months. Make sure to choose a loan term that gives you a comfortable period to payback.
- Minimum and Maximum Loan Amount: Make sure to choose a lender that can give you the flexibility to choose your loan amount. Some lenders in South Africa limit the loan amount range.
- Interest Rates: You might already know that low-interest rates are the best choice. But what you don’t know is that you have to choose between variable and fixed interest rates. Fixed rates don’t change over the period but variable interest rates change over time. Both have pros and cons but the choice depends on your requirements.
- Terms of Repayment: Usually, loan repayment occurs every month. But some lenders give you the flexibility to pay on weekly basis. You can opt for these repayment terms if you want to pay your loan quickly.
- Additional Benefits and Fees: To stay ahead of the competition, some lenders give you additional benefits for no extra charges such as excellent customer service. Take advantage of these benefits. But also be wary of any additional fees. The loan might look cheaper initially but might have hidden costs.
The process to apply for a loan online
Let’s take a look at the general requirement and process of applying for a loan online in South Africa.
Loan application requirements
- Age 18 years and above
- Valid South African ID
- Payslips and bank account statements as proof of income. It shouldn’t be older than 3 months
- Minimum monthly income proof. Some lenders want you to have a minimum monthly income to qualify for a loan.
- Good credit score
The online loan application process
- Once you have searched, reviewed, and compared different loan offers on our website Snappy Loan, click on “Snap It!” You will be taken to the lender website. You can start applying for the loan online.
- Chances are that the lender will ask you to fill an online application form for details such as an address, name, email, and more.
- Once you have filled the online application form, click submit and wait for the approval.
- After submitting your loan application, the lender will approve it and send you a loan offer. You have to accept the loan offer for you to receive the loan amount in your account.
Traditional loan application Vs. Online loan application
So, when you compare traditional loan application with the online loan application process, applying for a loan online has got several benefits:
- Easy and quick applications since you don’t have to visit the lender. Instead, you can apply for a loan online in the comfort of your home.
- Most online loan offers in South Africa have instant approval. So, you might have to just for a few hours or business days to get your loan amount in the bank account.
- You can easily compare different online loan offers anytime anywhere as the details are always available on the website.
- Online loans are also generally a safer option. This is because the information is available online that can be verified easily. You can also check out the National Credit Act that tells you about the lenders that are strictly regulated and other financial services. At Snappy Loan, all the lenders are regulated by the National Credit Act. You can easily find reviews and ratings for different loan lenders online.
Online loan application has made it easier for people to apply and get a loan from the comfort of their home. But if want extra information or assistance, it would be wise to visit a branch nearby.
Online personal loan calculator
When you are looking to apply online for a personal loan, don’t forget to use an online loan calculator. This calculator will provide you repayment amount estimate based on the loan amount and loan term.
When you are comparing loan offers on Snappy Loan, you will find different offers from numerous lenders from South Africa. Choose the loan offer that best suits your needs. Get in touch with our team if you want to know more about loan offers.