News

Pros and Cons of Online Loan Applications

Cyber Data Hub
Robin Okwanma
Written by Robin Okwanma
Spread the love

Loan apps have been growing at an alarming rate over the past few years. The process of taking a loan keeps getting easier. In a few clicks you could have access to certain amounts. There are many pros and cons of using loan apps,  We’ll be discussing some of these advantages and disadvantages in this article.

What are online loans?

Online loans are quick and convenient loans that can be availed online without having to go through a rigorous screening process. Unlike regular bank loans, you do not need collateral to secure your loan. It only requires minimal documents for identification purposes. These loans are approved quickly without the need to visit the lender’s office. The amount is transferred to your bank account right away.

Also Read-10 Business Ideas To Carry Out in Nigeria 2022

Online loans vs. bank loans

Bank loans are traditionally used for bigger items like home or auto loans. This means that the approval process is stricter and requires more documents to ensure a person’s ability to repay a large amount.

Online loans, on the other hand, get approved in as fast as 24 hours and only require documents for identification. However, the amount that a person can loan is much less than what one could get if they apply for a loan in a bank.

Advantages of Online Loan Apps

  • You do not need to provide collateral property to secure a loan.
  • It is fast and easy to get, as long as you are 18+m you have a good change of taking a loan.
  • You can easily compare offers from multiple sources and select the best option for you

Disadvantages of Online Loan Apps

  • If you lack discipline, you can easily get addicted to using loan apps and this can keep you in debt for a long time.
  • Online Loan apps usually have an extremely high interest rate
  • There is a risk of hacking and you could be a victim of Internet fraud.
  • The size of loan you can take is usually very limited in size.

COPYRIGHT WARNING!

You may not republish, reproduce, or redistribute any content on this website either in whole or in part without due permission or acknowledgment.
.
Proper acknowledgment includes, but not limited to;

(a) LINK BACK TO THE ARTICLE in the case of re-publication on online media,

(b) Proper referencing in the case of usage in research, magazine, brochure, or academic purposes,.
.
All contents are protected by the Digital Millennium Copyright Act 1996 (DMCA).

The images, except where otherwise indicated, are taken directly from the web, if some images were inserted by mistake violating the copyright, please contact the administrator for immediate removal.

.
We publish all content with good intentions. If you own this content & believe your copyright was violated or infringed, please contact us at [info@cyber.ng] for immediate removal.

About Post Author

About the author

Robin Okwanma

Robin Okwanma

Leave a Comment