People think that all loans are just the same, be it personal loan or fast online payday loan. The term personal loan refers to loans made in banks or other lending providers. This type of loan is ideal if you need large amount of money because of certain emergencies or to pay for some huge investments. Online payday loan with no fax, on the other hand, is usually an unsecured loan that you can easily apply online. As the name implies, this kind of loan does not require the borrower to fax any documents or requirements and you are guaranteed to get your money in just 24 hours after application. This is good for those who need small amount of money to last them until the next pay day.
There are actually lots of dissimilarities involving these two kinds of loan including the application process, rate of approval as well as the rate of interest. Let us tackle each of the differences one at a time.
If you borrow money from a bank or any lending company, you are required to go to their office or company to apply for a loan. In order to be qualified for the loan, you need to bring some necessary documents to submit to the office. As for fast online payday loan, people only need to go online, complete and send the application form.
Rate of Approval
When comparing the approval rating of the two loans, it is safe to say that online payday loan with no fax has relatively higher rate of approval than regular bank loans. The reason for this can be attributed to the fact that online payday loans don’t require borrowers to have a good credit rating. As long as they have a stable job and receive monthly income, their loan application will be surely approved. Loans from banks, however, have low approval rating due to the quite a few requirements which borrowers should meet, including a good credit score as well as other documents to prove control of the assets.
Rate of Interest
Loans from banks give low interest rates in comparison to fast online payday loan. Considering the fact that online payday loan with no fax is an unsecured loan, lenders must ensure that they’re paid during the following payday, hence, the reason for the high rate of interest.
People who are in need of big amount of money is best suited for bank loan application. But, when you simply need small amount of cash to cover your money problem, fast online payday loan will work for you. The benefits of this online payday loan with no fax are that you have the convenience of making an application online and get your cash quickly.