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Oct 19, 2016

Pros and Cons of Online Applications of Short Term Loans

At a time when spacecrafts have ventured beyond Pluto and we are attempting manned missions to Mars, it is almost unthinkable to have short term loans without the option to apply online. Many lenders of smart loans confine their propositions to online applications alone. They do not entertain offline applications. There are obvious advantages of online applications of short term loans but you also need to be conscious of some limitations.

Pros of Online Applications of Smart Loans

Convenience is the biggest advantage. You can apply at anytime from anywhere. You could be at your home, office, on the road or somewhere in another continent.

Applying for many loans simultaneously is possible only when you opt for smart loans. Unless you happen to be at a building where there are multiple banks or lenders based on different floors or just around the block, you have to travel great distances to apply with multiple lenders if the process is offline.

There is no geographic limitation when you opt for smart loans. A company based in London can approve a loan for someone based in Penzance and this can happen in a matter of a few hours, if not sooner.

Cons of Online Applications of Smart Loans

Smart loans require quick communication. The correspondence must be really fast to facilitate a quick application and swift approval followed by the disbursal of the loan amount. If the lender doesn’t have a really frequent communication or correspondence system then the borrower may be left dangling, waiting to hear back and that may not happen.

Ineffective communication is another problem with online applications. Unless the loan officers or the customer service representatives are really good at their job, many people will struggle with the forms and may not even know how to go about the entire application process. Not everyone is savvy while applying for short term loans.

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