Talking about financial assistance such thing as grants, programs, donations, various funds come to mind first. However, the process of receiving this kind of financial aid is long and demands a lot of documents. More than that, queues and long-term programs don’t correspond to “emergency” tagging. That’s why you need to know more about a quick, legal, and convenient way to get money when it is needed. This article will tell you about 6 main things you need to know about online loans.
1. Legal business
Our personal loan services legal? Unfortunately, people still don’t believe that such a practical way of lending is 100% percent legal. The main prejudice is that people don’t believe in the fixed interest rate. However, online loan companies inform their clients about the interest rate on their loans even before they are confirmed. Moreover, you already know the final sum of money with a charge you need to return. If you still don’t believe, you need to make some research. Find out more about the loan company you’ve chosen. Search for its license and some feedbacks on third-party resources. A government license is a warranty you can trust. Be extremely attentive, especially if you’re looking for a credit on the sites where two or more companies are presented. Use only trusted resources and checkup the best online loan options in Sri Lanka here.
2. Financial aid “to go”
As it was said earlier financial aid could be of different kinds, but an online loan is a type of financial assistance that is always at hand. Thinking about receiving a grant on education purposes you need to understand that there should be long term preparation which is impossible if you are in need right here right now. Surely you’ll need to pay a fee, but on the other hand, your debt will be closed within several days.
Well, there is a flip side to the issue. Sometimes people are looking for quick money without understanding that they are taking a risk when they don’t need to. About that risk a little bit later, now let’s talk about reasons. Normally, what is called quick money should help people to solve urgent problems. Imagine that the furious wind destroyed the roof of your house or your fridges suddenly broke down and the salary is only in two weeks. That’s a good reason to take a loan. The same with dental emergencies (basically any medical issue). However, buying another pair of shoes which isn’t a necessity and more like the “why not” situation isn’t the best reason to take an online loan.
3. Lending is always a risk
Yes, it is! But in terms of legal online loaning companies, that’s not risky to apply for a loan. This risk is more about your chances to get it and your ability to repay it. The last is even more dangerous. You shouldn’t take money if you have no options to return them. If financial organization asked for an employment certificate you should understand that your salary will be lessened in case of non-payment to repay debt. On the other hand, an employment certificate is another kind of airbag for you as you know that you’ll have money to repay your credit. What about freelancers? The situation is trickier. As a freelancer, you may have no job for weeks. So, firstly don’t lie in the registration form. In case if you’ll need a term continuation your lender would like to hear a credible reason to give it to you. Secondly, don’t postpone your prolongation request. Your silence may be too pricey!
4. The price of support
Comparing top banks in Sri Lanka and online financial organizations you’ll see that banks are much cheaper. Their interest rates are lower and terms are longer. However, that is all advantages. The price you’ll pay for the first-rate service through a higher interest rate (about 1.8-3%) in online financial organizations returns. You’ll save your time and nerves. No queues and incompetent managers with dozens of documents and extremely detailed stories about your upcoming purchase. In a bank, you really feel guilty for asking money. Plus, there is a limited list of reasons you could ask a loan for.
5. Types of online loans
Loans are classified according to the reason for applying. The most popular are the following credits:
This kind of loan is taken to buy a car. The procedure of taking that loan is pretty the same, but the age range in Sri Lanka is broader (18 – 75 years old).
A student loan is related to education in university or college. Required documents list besides mentioned include confirmation letter from the place of study with the price list of those things you need money for.
The universal type of loan. Needed documents were already mentioned.
As a rule housing loans in Sri Lanka require collateral. As a warranty serves a new house, car or valuable things.
This type of loan would be useful for those who want to open their own business. Besides the employment certificate, you’ll need to show the exact amount of your salary.
6. Minimum of information
Documents required for online loan:
- Permanent residence in Sri Lanka;
- Minimum age – 20 years old (maximum age depends on the company. Normally in Sri Lanka it varies from 50 to 60 years old);
- Employment certificate or constant income source confirmation (these are interchangeable documents);
- Valid phone number and e-mail to confirm your application.
- Valid credit card to send your money;
Why are there so few documents when you are asked for almost medical tests in a bank, you wonder? The fact is that to check the credit history, which will show whether you are reliable or not, the standard scoring procedure is taken by online companies. And that’s everything they need to know. Scoring shows all the information about you that is in the public domain. It is believed that a person who had no problems with the law and doesn’t hide anything about his biography is automatically a trustworthy candidate and will not shy from paying a loan.
So, if you are a Sri Lanka citizen with a steady income and proper age with the highest possible probability, even if you have a bad credit history or you haven’t taken a loan before at all, you have great chances to get a loan online within several minutes!