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Like we have seen across many industries from hotels, taxis and gambling, the Credit and lending industry has made big changes during its move to the online world. Many consider acquiring a loan to be a long process or errand involving driving somewhere, getting well dressed and preparing to negotiate with a banker in their office.

In 2016, the process can be far easier. Personal loans are now available online in many different forms and have entirely changed the way in which people can borrow or lend money. Their popularity has grown significantly over the past few years wand the major cause is convenience. However, the benefits don’t there. We’ve listed five reasons why you should consider taking your next loan online below:

Accessibility

Online methods such as peer-to-peer lending have provided access to money in a way that does not put as much pressure on the lender as it would a financial institution or bank. The method allows regular people to actually invest their money in the debt of other people.

First, anyone can post a desired amount they wish to borrow and then individual investors then decide whether they want to fund just a portion or the entire amount. Both the borrower and lender benefit from a lower barrier to entry to the credit market and a reasonable rate of interest. If the amount is small enough most lenders offer online no credit check loans.

Convenience

One of the more obvious reasons people are turning to online lending is the ability to acquire loanable funds from home. In minutes you can fill out an online form and be approved.

All dealings with a lender happen online almost exclusively, making it extra attractive for those with busy schedules.

Lower Rates

Online lenders tend to save money on expensive things like real estate and office buildings, allowing them to operate their business using lower rates of interest. Interest rates also tend to be fixed for Online Loans, so there is the extra convenience of knowing the rate won’t fluctuate while you sleep at night.

However, it should be noted that most online loans are not secured, or in other words are not collateralized. While this is not necessarily bad news, it does mean slightly more risk for the lender in the case of failure to pay off a loan.

Partial Loans

While banks and other financial institutions require an approval on the amount asked for in total, peer-to-peer lending providers have made taking just 50 or 60 percent a possibility.

Individual lenders differ in their trust and ability to lend allowing you to receive some funds more quickly that you otherwise wouldn’t have been offered.

More Options

Most traditional sources of credit have stringent rules when it comes to assessing their client’s background that make getting a loan nearly impossible for those with poor credit history. This causes people to have to settle for shadier sources of more expensive credit.

However, with online lending there are ranges of websites that aim to provide credit for particular credit history types. For example, a website called “Prosper” is proving to be a great option for those with good credit scores, while another called “Lending Club” has been a success for that have average to poor credit history.

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