The concept of an online loan is not as new as some would like to believe.
For those who fear the Internet, it must be noted that many renovations have been done to the World Wide Web since its birth, much of which involves an increase in security through secure websites as well as personal firewalls that allow an individual user to search the web and not be detected by hackers.
Deciding on a lender Once you have reached the phase where you are ready to apply for an online loan, you should have some information regarding the lenders with whom you wish to deal.
You should have a final list of at least five potential lenders that you wish to research in more detail before you make a final decision.
With those five, you want to research their website in more detail, and if there's a telephone number, you may choose to call and speak with a lending officer to get a better feel of the company and how they conduct business.
Some of the questions you may want to ask either on the telephone, through website research, or via email include: Interest rate Is interest rate fixed or variable If it is a variable rate, what is the maximum it can increase and how often Is there a prepayment penalty How long is the application process What factors do you use for eligibility What is the maximum amount of a loan and repayment term Do you charge an application fee You may think of some other questions as you conduct your research, but these are some of the most important questions that you want to be sure to ask.
Applying for the loan After you have finished the researched and found the lender that you feel can best meet your needs, you are ready to apply for your loan.
The application form will, in most cases, be included on the website; you need only be sure that you are logged into a secure website as noted by a lock in the lower right hand side of the website.
If this lock does not appear, you should not put any personal information into the computer, but contact the lender to ask for an application via email and a fax number so that you can return it to them.
Even if the website is a secure site, there may be information that you will need to fax or email to the lender such as proof of your social security number, employment and income information, and proof of residence.
You will be notified by email if your application is approved.
Loan proceeds Once the loan is approved, you will be notified how the proceeds will be distributed.
If the loan is for a specific purpose, such as loan consolidation, the proceeds will most likely be sent directly to the person or institution you are paying.
Other loan proceeds will be sent to you either via postal mail or through direct deposit into your bank account.
You will sign the contract either through electronic signature or by printing it on your printer and faxing it back to the lender.
However the lender chooses to do it, remember, both forms are legal and binding under the law.