There's a new fast way of getting a loan, and it's not through the applicant’s bank.
Online loans are fast and easy.
The applicant can apply from his or her mobile phone, iPad or computer. They can also do so from the comfort of home or whilst out and about. The online loan application process is very simple and straightforward and usually takes just minutes to complete. After completing the online application, the online lender will then check that the applicant has met the loan eligibility requirements and verify the applicant’s income and expenses by reviewing their most recent 90 days of bank transaction history. This is a requirement of ASIC and is a key part of every online lender’s Responsible Lending obligations.
In order to speed up the time of the lending process, most online lenders will generally use the services of a secure reputable external company such as Yodlee to help them with the responsible lending verification process. This allows them to access the applicant’s bank transactions for the last 90 days without ever seeing or receiving the applicant’s bank login details. The service is much like PayPal whereby the selling merchant never gets to see the applicant’s personal credit card details.
Once the online lender approves the loan, the applicant then has the opportunity to check that everything is correct before agreeing to the loan. One of the main advantages of the online lending process is that this is simple and transparent with all fees and charges outlined in very easy to understand language. When the applicant has completed his or her review and is satisfied, they then simply click the “I agree” button. It is all done from the comfort of one’s home. No going into banks. No long bank queues. No filling out lengthy and complicated bank documents. No waiting around for days, or weeks, dealing with the uncertainty of whether or not the bank loan will even be approved. And when approved the money is paid in under 60 minutes.
One caveat to remember is that the online lender cannot be responsible for the processing speed of the applicant’s receiving bank. That is, although the online lender will usually pay within 60 minutes of approval, which means the money leaves their bank within that time, the ultimate timing depends on how fast the applicant’s day-to-day bank processes the receipt of the payment. The receiving bank may take longer to process the receipt of the online lender’s money, which means in some instances it may take more than 60 minutes to be deposited into the applicant’s bank account. Also, depending on the speed of his or her bank, any applications made outside of normal bank hours may take even longer.