More people are banking online than ever before, both due to concerns around Coronavirus and the general convenience of modern online banking. However, people interested in a personal loan might not be aware of the wide range of options that are available nowadays without leaving the comfort of home, so it’s easy to get online loans that suit one’s needs.
Here are 5 different kinds of loans you can get entirely online.
1. Lines of credit
A line of credit works slightly differently than a loan — they sit midway between a personal loan and a credit card. With a line of credit, borrowers have access to a certain maximum amount of cash, which they can withdraw up to the limit whenever they need it.
Like a credit card, a line of credit will only start accruing interest once money is withdrawn, but rather than charging credit, borrowers withdraw cash which they can use as they please. Unlike a credit card, though, perks and rewards aren’t typical for lines of credit.
2. Online installment loans
Installment loans are loans that cover a large sum of money which is paid back in smaller installments over time. They can come with a wide range of repayment plans and terms, so installment loans can vary widely from lender to lender. For people who need a larger sum of money and have a plan for gradual repayment, an installment loan can be a great way to borrow money online.
3. Loans from online lenders
Some banks are entirely online now, which can offer an edge when it comes to attractive interest rates and varying repayment plans.
Online lenders can sometimes offer better deals because they’re not paying for features like storefronts — however, borrowers will also lose out on the convenience of being able to manage their loan in-person. These loans can be a good choice for people who have accumulated high-interest debt and are looking to get that debt under control with a single, lower-interest loan or may have run into an unexpected financial emergency and are in need of a loan.
4. Peer-to-peer loans
Peer-to-peer lending, also known as P2P lending, is a unique form of loans from the Internet age where individuals are connected to one another directly to handle personal loans. P2P loans will be managed by a larger website that sets some criteria and guidelines for their loans, but the money will come from an individual, rather than a bank.
Although P2P lending is relatively new, it can be an option worth researching due to the variety of options available. People with a short credit history or fair credit might consider P2P loans, although the interest rates can be on the higher end.
5. Loans from a credit union
Credit unions often have great, flexible loan options for members, but the details will depend on what credit unions one qualifies for.
To find a great credit union offer, borrowers can search for local credit unions as well as ones associated with their industry, or look for a credit union that offers membership to anyone who gives a charitable donation to an associated cause.
Notice: Information provided in this article is for informational purposes only. Consult your attorney or financial advisor about your current financial circumstances.
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Original Source: 5 Different Kinds of Loans Available Online
