Ever imagined a life without your cell phone, credit card,
and car? Once considered as luxury items have now become necessities. Life is
going at a high speed. New technologies and innovations certainly make life
smoother and convenient. Internet i.e. the web media of mass communication is
one thing that has indeed revolutionised our way of living. It has given us
access across all boundaries and frontiers in fraction of seconds. So, be it
booking tickets for a movie, or looking for a life partner, Internet has become
a vital part of our lives. It has earned for itself the reputation of being a
reliable source of information and fulfills our cognitive, social and
recreational needs.
When it comes to the loan market in the UK, the online media
is being used effectively to advertise, promote, publicize and sell varied loan
products. The advancement of online media benefited the UK loan market in
manifold ways.
Benefits for the customers:
Access to various lenders and loan products
Cost-effective way of searching for loans
Saves time and effort
Web tools like loan calculators help to compare loans
Benefits for the lenders:
Target oriented reach
Automated process of loan application
Secured loans that generally take a long time have also
become fast in application and processing, thanks to the online media. Gone are
the days when it used to take months for the secured loan application to get
approved and disbursed. No body today has the time to go "in person" to
various banks and manually fill in the lengthy loan application form and wait
endlessly for the money to get transferred to his account. Online secured
loans, thus, come really handy to those in need of quick money. Though these
loans can in no way be quicker than the unsecured loans, the web medium has
indeed made their processing swifter than before.
Online secured loans give the borrowers ample opportunity to
search for and compare various deals offered by different lenders. Some of the
web tools that are of great help to the borrowers are discussed below:
Online Loan calculators- These help you to search compare
and find the cheapest loan deals to save you money. Just by entering a few
details like the amount desired to be borrowed, the loan tenure, etc. you get
an approximate EMI (equated monthly instalment) you'll be paying at a certain
rate of interest. Loan calculators help in giving borrowers a tentative idea
about the loan instalments. It is a handy tool to help you decide which loan
deal to choose.
Online Credit reports- Though secured loans are dependent on
the value of home equity, the credit score of the borrower is also important in
getting him a cheap deal. To find out your credit score on your own, enter your
financial details on sites that offer free credit score and reports. These
online reports help a lot in assessing one's credit status. Online credit
reports carry the person's detailed credit history relating to repayment
record, defaults, CCJs etc. Experian and Checkmyfile are two of the websites
that offer credit checks and reports free of cost.
Online Comparison charts- Many of the financial websites
offer comparison charts that compare loan deals offered by various lenders on
the basis of the APR charged. This helps the borrower in deciding as to which
loan deal to go for. Especially in case of secured loans, cheap rate of
interest can be availed with other added benefits like flexible repayment
options. So, it's always advisable to take the help of an online comparison
chart. This saves the energy, time and effort otherwise spent in shopping
around the loan market.
Loan advice and alerts- Many websites provide you timely
alerts about changes in the UK loan market. They also advice you if you call
them. These sites offer loan help lines and loan consultants. And the amazing
thing is that many of these sites offer these services for free. So, you can
remain updated on changes in secured loans and the interest rates etc. for free
by registering to one of these sites.
So, availing secured loans is no longer a daunting task with
the advancement of online media. Let's see how the process of online secured
loans works.
Application Stage- This takes a few minutes as most of the
online applications are simple and short. Once the borrower fills the online
application form for secured loans by entering a few vital details the
loan-officer of the lending institution calls him for other verification.
Approval stage- Once the credit check is done by the
loan-officer, the underwriters offer the customer varied deals on online
secured loans in accordance to the credit profile and financial requirements of
the borrower. The loan amount offered on secured loans is decided on the basis
of the property evaluation carried on the lender.
Disbursal Stage- Once the borrower agrees for a particular
loan deal, the amount is transferred into his account. Thus, in three simple
steps the secured loans are processed.
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