Category Archives: News

Features of Online Loans!

For more than a decade, we have been witnessing the enormous growth and development in technology. With so much of advancement in technology, we can do almost everything quite easily and without leaving our home or office. Yes, we can do all transactions online. An application for a loan too could be made through online. Internet helps you in the matter of transacting businesses. Taking advantage of this facility, these days, there are many people who make their loan applications through online. The work involved is very simple and easy. There will be an application form, available in the ‘net’, and you have to just fill it up with details as required and submit it.

Know the different options of loans

Now that you have decided to make an application for an online loan, it is better for you to know the various types of loans that are available online. There are business loans, student loans, personal loans, auto loans and home equity loans and so on. In short, whatever loans that are available in the finance market are available online too. You decide which type of loan you want to avail and gather the particulars connected with offers of such a loan. Then you start taking action in the matter. Complete details will be available online regarding the various types of installment okay credit loan.

If your option is for a secured loan, you have to offer some security as collateral for the loan. It could be anything of considerable value, such as your house, car or any other property.  If what you want is an unsecured loan, there is no need for you to offer any security for getting the loan. Both types of loans have their own plus and minus points. In the case of a secured loan, the rate of interest will be low and you may pick and choose the term of payment. The loan may be available for a larger amount. As for the unsecured loan, you do not have to worry about offering any security. But then, the amount of loan could be small and rate of interest may be somewhat high.

Online Loans

There may be a genuine doubt in the minds of certain people as to the eligibility for an online loan. Such doubts can be dispelled. Everyone is eligible for an online loan. As a matter of fact, even if you have a bad credit, you can still apply for an online loan! Generally, online lenders are sympathetic towards online loan applicants. They adopt a very lenient view in the matter. Online loans are becoming more and more popular because the procedures are limited and simple compared to the loans available personally in the market. The applicants need not have unnecessary worries over the outcome of their applications.

Seldom do the online lenders reject any loan application, even though they run a risk, to some extent, in giving a loan, particularly an unsecured loan.

In a normal loan, the processing of an application takes much time, sometimes even days and weeks, whereas, in the case of online loans, the processing is done quickly. Their way of processing is to be praised immensely! In spite of their lenient attitude, it cannot be said, that the online lenders complete the processing quickly in respect of all the applications. There may be delays too, but only in exceptional cases. There are no ‘fixed’ rules regarding the processing time. While taking an online loan is easy, convenient and advantageous, you will do well to go through some of the ‘reviews’ from those who have availed such online loans, which will be of help to you to take a final decision in the matter.

Consumers Shun Professional Financial Advice

New research conducted by insurance giant Aviva, has shown that around 80% of Britons would get financial advice from their family or friends (or even the internet) instead of going to an independent financial advisor (IFA).

The study showed that the older that the consumers become, the more likely they are to seek professional advice. It found that around 75% of 18-24 years olds would turn to friends and family first, compared to around a quarter of over 65’s.

The study suggested that the reason for this low number of people turning to professional advisors is lack of knowledge and understanding.  Most consumers surveyed correctly knew that an IFA would be able to help them with information on savings, mortgages, income, tax and other insurances. Whereas only a meagre 25% knew that they could help with debt management. The study did show however, that 95% of people who actually sought professional advice felt that they positively benefited from the experience.

In many cases, people will look to short-term loans, like payday loans to help with financial difficulties. For example if they need help to cover urgent expenses. Whilst payday loans are a viable option to help with emergency finances, they should not be used to help with long term debts. They should also not be used as a method to cover other loans or debts that you might have. If this is the case, they we would always recommend that you seek help from a finance professional.

What Will Be The Fate Of Payday Loans?

It’s hard to avoid in the news this week about Parliament voting on the subject of the payday loans industry. Critics of the short-term loans industry are calling for caps on the cost of credit and cut down on the number of people using payday loans.

This comes after one of my recent blogs talking about the fact that moneysupermarket.com reported a 58% rise in demand for payday loans, as they seem to be increasing in popularity.

The biggest critic of the payday loans industry is Labour MP Stella Creasy, who is leading the call to change the way that the short term loans industry works. It does make you wonder though, what will happen to the customers if payday lenders weren’t able to compete anymore, as more and more people are taking out short term loans to help with emergency finances.

When used correctly, payday loans can actually work out cheaper than going over your overdraft limit and paying for high bank fees. The danger is, when people use them either to cover longer term debts, pay off other loans or use them not as a temporary solution. This is something that we always discourage here at Pay-day-loans-uk.co.uk, as we stick to a code of responsible lending.

To work out if you will be able to afford your loan, instead of looking at the ‘high interest rates’ (APR), you should instead look at the repayments charts of your lender. For example, some lenders charge £25 on top of every £100 that is borrowed, but this does vary between loan providers.

So, what will happen in this vote to amend the Finance Bill? Will it affect the payday loans industry? If a cap is placed on interest, will it then price out all of the lenders, meaning people will have no choice when it comes to emergency credit? Who knows. We will have to wait and see what decision is made and how it affects customers.