What is an online loan?
An online loan is a personal loan requested and concluded online. This means you can do it all from the comfort of your own home just using your cell phone, tablet or computer.
How Much Money Can I Borrow Online?
When you apply for a loan online, you often have a wide variety of loan products available. Expensive short-term lenders are often happy to lend as little as Â£ 100.
Some lenders will offer online loans of up to Â£ 100,000, but loans of this size are unlikely to be approved without careful consideration and human underwriting.
At CashLady you can apply for unsecured loans and payday loans up to Â£ 5,000 online.
How to apply for a loan with CashLady?
If you apply for a loan online with CashLady, your application will be seen by several lenders. The number of lenders will depend on the information you submit on your loan application.
Each lender has different loan criteria. For example, some lenders will offer smaller loans, while some providers will have much higher minimum loan values. Many lenders will not consider loan requests for less than Â£ 1,000.
When you apply with CashLady, all you need to do is visit our website and fill out the online form. You will need to provide some basic information about yourself and answer a few questions about your financial expenses each month, such as your accommodation, food, and travel costs.
Once you have submitted your details, the information is then presented to our panel of online lenders. Once we have obtained the initial acceptance from a lending partner who wishes to advance your application, we then send you to the lenders site to complete the final steps of your application and submit any additional information that the lender may require in as part of its subscription process.
Benefits of online loans
Every day thousands of people search the internet for short term loans online.
A busy life and professional commitments often mean that we don’t have the option of visiting a physical location when we need a small loan.
If so, applying for a loan online may be an ideal solution. Especially in an emergency when we need to borrow money quickly.
Here are 3 advantages of applying for your loan online:
- Convenience: You can apply 24/7 from the comfort of your own home
- Speed: Many online loan providers will transfer the money instantly
- Privacy: Many people prefer to manage their personal finances in the privacy of their own home
Online loans – FAQ
Can I Apply For A Loan Online If I Have Bad Credit?
If you have bad credit, you can apply for a loan online, but it can be difficult to get a loan offer if your credit score is particularly low. Many lenders will look at loan affordability and recent money management as a way to assess your creditworthiness, which can be very helpful if you’ve recently demonstrated better habits.
What is the difference between a direct lender and an online broker?
If you search for loans online, you will likely see a number of options. What is often less obvious is the providers who are lenders and those who are online brokers.
The difference is that a lender can offer you a loan, while a broker is there to introduce you to a lender. If you want to maximize your chances of being accepted for a loan, an online broker can show your loan application to multiple lenders at the same time to increase your chances of receiving an offer, while keeping loan applications to a minimum.
Will i need a credit check for an online loan?
Yes, if you are a new customer, you will definitely need a credit check before a lender offers you a loan. Any FCA (Financial Conduct Authority) regulated lender should make sure that you can comfortably repay the loan amount you requested within the agreed timeframe. So he will not offer you a loan without a credit check.
Do i need a guarantor for an online loan?
There are a number of guarantor lenders in the market, but you don’t need a guarantor to apply for a standard unsecured loan online. If your application is not accepted, you may find yourself referred to a Guarantor loan provider who may be able to help you with your financial needs.
Are Online Loans Safe To Use?
If you are applying for a loan from FCA approved providers, online loans should be safe to use. If you are applying for a loan online, be sure to check the website for an FCA registration number (usually at the bottom of the website). You must then verify that the number matches the record on the FCA register. FCA regulated lenders and brokers agree to treat clients fairly. Dealing with companies licensed by the FCA also means that you have a governing body to talk to if you are unhappy with your service.
While most lenders offer quick application processes and instant money transfers, they all need to follow the strict guidelines imposed by the FCA.
Most loan providers have undergone many changes in an effort to gain full FCA clearance, ensuring that their products and services are fully compliant, fair to customers, and most importantly, safe.
This means that online credit products are now designed with the customer’s needs at the heart of everything.
Do i need a good credit score?
No, you don’t need a good credit score to apply for a loan online, but a better credit score will help you get a loan offer.
What happens if I miss a refund?
If you miss a loan repayment you may be charged a late repayment fee – usually around Â£ 25. If you suspect that you are going to miss a repayment, you should let your lender know as soon as possible, as they will be happy to wait a little longer without charging you.
If you don’t repay your loan according to the terms of your loan agreement, you can:
- Be charged additional fees (plus interest) on any missed payments
- Damage your credit report when lenders tell credit reference agencies
- Be issued with a CCJ (county court judgment)
- Have to file for bankruptcy
How do online loans work
Online approval process
When you apply for a loan online, there are several steps in the process before a decision is made, including:
Your loan application is validated online using initial validation methods that verify the accuracy of the information entered. This process checks the validity of your; zip code, phone numbers, e-mail address and a few other details to verify that they were entered correctly.
Your loan application is then sent to several lenders, one at a time. This is the basic processing time required to get your online application decision and can take up to 2 minutes. You are advised to wait during this process, as each lender who receives your request can extract additional data to validate and approve your request.
Initial Approval: If your loan application is approved directly by a lender, your application will be redirected to the online signing page with the short term loan provider you have chosen.
Final loan approval and underwriting:
Sometimes small online loan applications cannot be approved instantly and may require human underwriting. This is sometimes necessary if further clarification is needed and may involve additional checks performed by lenders to verify, validate and evaluate your request before any money is deposited into your bank account.
For instant loans online, this usually happens within a few hours and the funds can often be in your account the same day.
(learn more about same day loans)
How long does the online process take?
These are quick loans and the online process can take as little as 2 minutes once you have completed your online application form. The time it takes for lenders to approve your application may vary depending on the time of day, time of week, or if they need additional information from you (such as proof of income or documents. identification)
Summary: Online loans
If you’re looking for a loan, there’s a good chance you’ll start your journey online, research your options, or apply for a loan.
Applying for a loan online is often faster and more convenient than doing it over the phone or at a branch. It also means that you can enjoy more privacy.
CashLady has been helping people online since 2008 and we have developed our website based on the needs of our customers. Speed, user experience, and great service.