Digital lending technology is a new way to borrow money, and is a great alternative to traditional bank loans. Usually, customers apply to borrow a certain amount of money online and select a loan term, to find a deal which is tailored to their individual needs. Here, we will take a look at how exactly digital lending technology works and what it is.
Digital lending is done fully online, without any physical meeting between the lender and the client. Often, there isn’t even a need to make any phone calls either – the process is entirely digital. P2P platforms are also popular amongst those looking to borrow money online.
Vippinurkka is a popular platform for comparing online borrowing companies. Here, users can enter the amount they wish to borrow and for how long. They will then be presented with a list of companies so the interest rates can be compared, and customers can select the deal which best suits them.
Digital lending is often more open than traditional bank loans. Some companies can offer money to those with no credit history, as well as those with a poor credit score. The process of applying for a loan online is a lot simpler than going to a bank, too. The application process is much quicker, and can be done in as little as half an hour. It can also be done at any time of the day – 24 hours a day, 7 days a week.
Applying for an online loan is also much more relaxed than visiting a bank. This is a major part of the appeal of online borrowing. Users don’t have to dress smartly and sit down in front of a bank manager – the application can be done from the comfort of your own sofa, and even in your pajamas.
Once a customer has applied for an online loan, it doesn’t take long to learn if they have been accepted or not. This is another advantage over traditional bank loans, as it can take several visits back and forwards before you know if you’ve been accepted or not. Some online lenders can transfer the cash to their customer’s account within a few hours of being accepted.
Borrowing money online can often get customers a better deal than visiting the bank, too. Online lenders don’t have the same overheads as physical banks, so often to have to charge such a high service charge. It’s also easier to shop around and get the best deal in terms of low interest rates.
Another type of online lending which has become popular is the payday loan. These offer quick cash usually for a very short period – hence the name. However, we strongly advice against this type of loan as they have very high interest rates, which means they often get borrowers into more and more debt if not repaid very promptly. You should also look out for lenders which ask for up-front fees, as this is more often than not a sign of a scam.