4 Reasons to Borrow From an Online Lender in South AfricaSeptember 05, 2019
Although it may be a fairly new concept in the financial world, online banking has made a huge impact on the modern consumer’s life. In just a few years, the way that people conduct their transactions has completely changed. Online banking has made it possible for South Africans to ditch physical cash and choose to buy and sell with a few clicks of a button, sending cash from one account to another in real-time.
While the convenience that online banking provides is definitely impressive, there’s one other element that has changed the game: online borrowing.
The evolution of borrowing money
For as long as humanity could document, debt has been around. For generations, debt has existed in forms ranging from complex loan payments to simple “IOUs.” Just like any other constant problem in the digital world, there are technologically driven methods to solve it. While there are a variety of ways to offset a debt in today’s modern society, nothing has proven to be more effective than seeking the services and assistance of an online lender.
Online lenders have disrupted the lending industry, leaving complications out of the equation by minimising the number of forms and requirements necessary. Although this makes things easier for the borrower, lenders have to protect themselves by placing greater importance on the remaining requirements.
Thanks to modern advancements in technology and a revolution in the way financial operations work, debt has become something that is now much easier to solve with a few simple steps. Before you drop everything and head on over to an online lender’s website to inquire about a loan, however, you need to understand what you’ll be signing up for when you borrow online.
The benefits of borrowing from online lenders
In order to better understand the concept, let’s look at the benefits of securing a loan from an online lender:
- Astoundingly fast approval:
Thanks to the updated online lending process and system, South Africans seeking the services of an online lender can enjoy a quick approval process. Typically, the standard online lender will be able to tell you how much you can borrow while giving you an idea of what your payment schedule will look like after you’ve filled in the required information. In a nutshell, the quick process that online lenders follow can make it easier for them to approve and grant loans in as little as one or two days.
- Borrower-friendly rates:
A great advantage that comes with borrowing online is that it’s far easier to shop around and compare the rates of each provider. Because the lending industry is so competitive, you can expect to see astoundingly low-interest rates for almost any type of loan. Aside from lower interest rates, South Africans can also enjoy significantly lower service fees (or even none at all!) due to the fact that service providers don’t have high overhead expenses.
- Easier approval process
Although a less-than-stellar credit score might prove to be problematic when you apply for a loan from a regular bank, the situation is actually different for those availing from online lenders. Thanks to more lenient standards and requirements, those with lower credit scores who are in need of financial support can still have their loan applications approved.
- No need for collateral
A common concern that many South Africans have when it comes to borrowing money from banks and lenders is that they’ll have to fork over some sort of collateral and risk losing a valuable item. In the case of online lenders, however, most loans that they offer are unsecured, which means that borrowers won’t have to hand over something valuable for the cash they so desperately need.
When unexpected circumstances arise, it isn’t uncommon to have to borrow money to deal with it. Instead of bracing yourself for the lengthy loan application process at a bank, however, why not consider Hoopla Loans? We offer personal loans to South Africans in a matter of hours, making us your best opportunity to get your hands on the cash you so desperately need. Let us help you today!