Online Personal Loan: Advantages and Disadvantages
There are numerous reasons why you might consider borrowing. Debts, bill payments, willingness – or need – to buy cars, pay for repairs, medical bills … reasons abound. And what would lead you to opt for a personal online loan ?
After all, there are many other loan arrangements available. Including the overdraft mode, which is already pre-approved at your bank. So why would you choose the online loan?
Let’s look at the advantages and disadvantages of getting a personal loan online.
Advantages of Online Personal Loan
- Interest rates are high, but even more worthwhile – Online loan interest is actually quite high. However, they are not the highest – overdraft interest, for example, is much more expensive. That way, to get money fast, personal lending is even more worthwhile – it’s faster and cheaper.
- It is very simple to apply – Applying for this loan is extremely easy through the lending websites without going through all the common bureaucracy that exists in banks when you apply for a loan. In addition, you order directly from your home, without having to make an appointment with a manager or equivalent, choosing the amount of installments to pay.
- Money arrives very quickly – When your order is approved, which is already done within a few hours of the order, it is common for money to fall into your account within 24 business hours. It is perfect for emergencies.
- Little rigidity for approval – Getting personal loans online is easy. Even those who are negative, with their dirty name and social security number, can be approved for the loan. This is also one of the reasons why interest rates are so much higher than others.
If you want to take advantage of personal loan, look for your ideal through Astro!
Disadvantages of Online Personal Loan
- Interest rates are very high – They are among the highest in the category. Therefore, you must ensure that you take into account the amount of interest per month when deciding to calculate the total amount to be paid and even when calculating your installments. Avoid unpleasant surprises!
- There are many fees, and they are high – This type of loan usually has many fees being charged by financial institutions – which are not banks. Thus, in addition to the monthly interest, you must count on them when making your payments and planning your installment.
- Deadlines are not often very friendly – It is common for financial institutions to give a very unrealistic deadline for payment to be made back. In the case of non-compliance, non-payment, you may end up getting a lot of debt. If you want to borrow to pay off debts, take it easy to avoid worsening the situation.