Why are online in the UK trending among borrowers?

Posted by sophia on February 20th, 2020

To understand why online loans in the UK are trending among borrowers lets go back in the history of lending.

The history of loans dates to 1754 BCE in the temples of Mesopotamia. That year official large-scale lending began. That time temples were not only the venue for worshipping but also for a sub.

Slowly the lending process evolved, and silver was considered the standard, abandoning cattle and grains. Let’s fast forward to 1980 the data could now be converted to bits of information. This changed the face of lending markets. Earlier when a loan application consumed 2-3 weeks, it got reduced drastically.

Yet this didn’t change much until the birth of smartphones. People loved the convenience a smartphone offered them. Many companies started to intensively invest in making smartphones smarter. Many banks and NBFCs who were following the evolving market of loans, saw this as an opportunity and introduced online loans.

This increased the conversions of lenders as more and more people started accepting it, and now we’re at a stage where we want only online loans.

Okay now let’s explore the top 7 reasons why online loans are trending among borrowers:

1. Fast & Instant: The speed of the internet did change everything. The faster our internet got, we got habituated to fast services. Now even imagining a delay in our order by 1 day feels like 1 year. Online loans are as fast as light. You fill up the application form, and by the time you make a sandwich, the sub is credited to your account.
2. Easily accessible: The borrowers now don’t have to struggle to get the loan approved, unlike the old time when you need to have special connect in the bank to get your loan application approved. Now your credit score is enough to get you a loan irrespective of you having collateral or not, and the credit score can be checked online by the lenders. They need not go through the prodigious ledger.
3. Work culture: Now, the working culture of humans have changed. Though things get completed fast with the help of a computer, the amount of work has also doubled. Earlier writing an article for a magazine was enough for a month, but now you must write blogs daily on the internet to sustain. This stole all the time people had before. In this work culture, if anyone wants a loan then, it must be via their phone or computer.
4. Increasing road traffic: Though this reason seems outrageous, it is one of the most significant ones. It’s just impossible to drive for 2 hours to reach from office to bank or from home to the bank, and you must consider the return commute as well. So, 4 hours are gone in just going to the office and coming back from there. Take another hour to get your loan approved, and on top of this, if the loan gets disapproved, all the hard work goes to vain. So, availing the loan sitting on the couch seems more legit.
5. Quick access to information: Earlier when there were no online loans, to even get the latest interest rates, people had to run from bank to bank, and this consumed their entire week. We don’t have that much of time now. Now the lenders update their rates online along with other substantial information that we need to know before availing a loan.
6. Secured: Along with speed, the loans are secured. The funds are electronically transferred. So, you can assure yourself that your money will be safe, and you can use it the way you like.
7. Makes sense: Online loans make sense because they save time, and we all know time is money. If I avail a loan early, then I can put it to work early meaning early returns, and this eventually increases my productivity. So, it makes sense to avail a loan online.

These are the top reasons why people are inclining towards online loans. If your reason for availing an online loan is different then comment down below.