Applying for a loan can be a time-consuming process, especially when taking the traditional route of personally visiting the lending institution. Banks in the UK can take several days to approve your request and involve a lot of bureaucratic red tape in the process. If you’re looking for a quick solution to your financial problems, payday loans online can greatly enhance your chances of success.
The internet has infiltrated almost every industry in the business world, including the financial sector. Procedures that involved numerous trips to different offices can now be accomplished with a smartphone. The emergence of online lending institutions has also made it easier for people in the UK to seek financial assistance.
Online lending in the UK
Online lending apps have become a popular feature of hundreds of lending companies, with people enjoying numerous options to choose from. The emergence of online payday loans has enabled same-day funding services for borrowers in an emergency, as well as fewer qualification requirements for people with bad credit.
The presence of online funding has steadily gained traction since its introduction, with more people finding it convenient to use a web-based platform rather than visit a physical location.
According to the CMC, over 80% of borrowers in the UK apply for their loans online. Major lending companies in the industry have shifted their business online, with the leading organisations all featuring established websites.
How long does it take to apply for a loan online?
Depending on the platform chosen, applying for an online loan can take between three to five minutes. Different lending apps have varying procedures, but the main information required involves your personal details and loan amount request. As long as you’re 18 years of age and a UK resident, you can qualify for an online payday loan. You will also need an active account when to complete the process.
Apart from the basic requirements, you’ll also need to provide proof of income when applying for funding. Your level of income and scheduled paydays play a significant role in determining what kind of loan you can qualify for. The amount of interest charged is regulated by laws established by the Financial Conduct Authority (FCA).
Different lending companies offer varying timelines regarding the approval of a loan. In most instances, the larger the amount requested, the longer it might take to receive approval. Most lenders offer a response in less than a week, with many providers replying to your request in just a few hours.
Are online payday loans faster than traditional methods?
There are multiple lending options available in the financial sector, with payday loans becoming one of the more popular choices in today’s economic climate. Various studies have revealed that millions of people in the UK live from paycheck to paycheck. The need for temporary financial aid is something that’s experienced by over 30% of the population.
The popularity behind online loans is based on the ease and speed involved with the approval process. Online applications are generally faster than orthodox methods due to centralisation of the procedure.
Designated fields are designed to collect minimum information, meaning you don’t need to retrieve multiple forms from various sources during the procedure.
Personalised features related to smart devices (like the ability to save information) have also made it easier for people to keep track of their records. If you need to confirm the interest accrued with your loan, for example, you can just simply log on to your account and view the specifics. E-commerce platforms have made the repayment process easier, removing the need for travel or scheduled meetings.
The importance of a fast approval rating
Short term loans are usually taken as a result of emergencies that require immediate attention. If you’re thinking about applying for a payday loan, the chances are that you need the money sooner rather than later. Studies by the CMC have revealed that over half of borrowers in the UK focus on the speed and availability of an option when considering different lenders.
There are numerous reasons why you might need funding almost immediately, with some popular grounds being bills and medical emergencies. Issues like paying your rent or buying medication are circumstances that can’t be postponed, leaving you with no choice but to seek financial aid. The faster your loan is approved, the sooner you can receive the needed funding.
Considering the payment schedule involved with a particular lending option is crucial when making your final decision. The amount of interest connected to the loan cannot pass a daily charge of 0.8% according to UK regulations, but different lenders charge different rates. There is no law governing the amount that can be borrowed when taking a payday loan, making it an excellent option for addressing both big and small needs.