Online loans are some of the latest additions to the range of digital financial products that financial institutions offer. Like traditional loans, the online variation is a stepping stone to helping you make purchases when you don’t have enough immediate disposable income but can follow through with a monthly repayment scheme. You’ll find an array of personal, quick, and business loans specifically for your needs — all with a completely online application and redemption process.
If there’s anything that traditional loans are known for, it’s the long waiting period in-between steps in the application process. Online loans are much simpler and less time-consuming to apply for, but if you’re ultimately unprepared, then there can be inevitable delays before approval. Here are some tips and tricks to help you get your online loan approved in the shortest timeline possible.
Choose the right moneylender
Online loans are known for their quick turnaround time, but if you’re on a tight time crunch and need a loan within the next hour or so, you’ll have to narrow down your options. For instance, if you’re looking into getting a small loan value of P10,000 or less, it isn’t difficult to find a quick loan that can approve your request within 15 minutes. Additionally, online loans aren’t limited to small value lending. As financial institutions have been moving toward an all-digital services framework, they now offer more substantial loan types online, including OFW loans, personal loans, and business loans.
A tip is to check GoBear’s consolidated list of short-term lending and personal loan options for an overview of some of the best moneylenders on the market and all the application requirements. You’ll also find the estimated approval time under each of the moneylenders, which you can use to decide which loan to avail.
Have all the requirements ready
A big mistake that many borrowers make is to immediately click the “apply now” button without prior research. The application process for online loans is so straightforward that you can finish it in no more than a few minutes, but with a few drawbacks. If you send in an incomplete application form or are missing a couple of documents, it can result in a back-and-forth between you and the loan advisor. Depending on how quickly you can respond to their calls or emails, the overall process can get delayed.
Consequently, before clicking on the “apply now” button and taking a shot at an online loan application, familiarize yourself with the requirements and have everything ready. Some common documents that most moneylenders ask for include the following:
A valid government-issued ID that contains your name, photo, and signature, such as a driver’s license, passport, TIN, etc.
Proof of employment or income if you’re an employee, and the DTI or SEC registration documents if you’re self-employed
Apart from the above, you may have to be 18 years old to qualify for a loan. If you choose to go through an online loan application with a bank, then you may need some form of a credit footprint, such as a credit card or a substantial credit history. On the other hand, quick loans require much less documents, so you’re likely to complete the application with only a valid government-issued ID. Having these at the ready will ensure that you have everything needed to get your loan approved, speeding up the approval process.
Call the moneylender for help
The online loan application process is very simple and easy-to-understand. But if you run into any hiccups along the way, such as system failures, a confusing field, or a requirement that you’re unsure about, get in touch with the moneylender to get help immediately. You can either call their customer service hotline or send them an email asking for help. Alternatively, you can browse GoBear’s blog or individual loan sections to see if it answers your questions on loan requirements and the general application process.
Don’t be a delinquent borrower
Any form of credit delinquency raises a red flag to moneylenders. Whether you’re applying for a quick P1,000 loan or a personal loan over P500,000, it’s going to be tough getting your application approved when you’ve got a history of late repayments, unresolved debt, fraud, and more. While it’s easier to apply for online loans with no bearing on your credit score, any history of bad behavior within the same moneylender will also make you ineligible for larger loans — or any loans at all.
Moreover, with quick loans, moneylenders often place an incentive to encourage clients to practice good borrowing behavior. That includes perks such as increasing the available loan value and further decreasing the approval period and requirements, exclusive to frequent borrowers with a good track record. Even larger banks and financial institutions offer similar benefits to people with a stellar credit history.
Follow through with the application process
Some people think that the online loan application process is the same three easy steps for every moneylender: apply, get approved, and then get the cash. While some quick loans are certainly as simple as that, others require you to acknowledge an email confirmation or respond to a phone call. These nuances are often done for security reasons and to ensure that you legitimately applied for the loan.
Therefore, after sending in your application and all the necessary documents, turn your notifications on and always have your phone nearby. You’ll receive an email, text, or call within the next 24 hours for larger loans, or within the next few minutes or hour for quick loans. You’ll also be informed of anything wrong with your application. If you respond quickly, then you can avoid delaying the timeline of approval.
Applying for online loans is a fast and hassle-free experience, and you’ll find that it doesn’t take much effort to expedite the approval process so you can get your loan approved in the shortest possible timeline.