Online Loans on the Increase

by : Liam G

Over the past few years, users' experience of the internet has vastly improved. With the introduction and widespread use of broadband, browsing speeds have been dramatically increased. Further developments in technology have made online transactions much safer.

As a result, the internet has streamlined the way in which we interact, purchase goods and services, conduct research and lots more. As the internet has become more secure, there has also been a dramatic increase in online banking. In particular, more and more online secured loans companies are emerging.

The main advantage these lenders have over traditional banks is that they have much lower operating costs, which can be passed onto the consumer in the form of lower secured loans interest rates.

The popularity of online secured loans has exploded over the past few years, along with many other financial products. One study recently found that the purchasing of online financial services has increased by 208% over the past year or so. Changes in the law surrounding loan applications, and the convenience this brings are expected to further increase there popularity.

Further research shows that almost half of 18- to 24-year-olds would shop online for a loan and over a quarter of adults would shop online for a loan compared with going directly to banks.

As mentioned, the increased popularity of online loans has been greatly encouraged by the increased efforts lenders are taking to further secure online applications. This is expressed in a further survey; in which one out of five adults feel that online banking has improved considerably over the past 5 years.

Along with the strictly online loan lenders, many "brick & mortar" banks are combining traditional lending methods with online ones. This usually involves banks offering lower rates on loans applied for online compared with their branches.

This can be very beneficial for consumers, as they get the convenience of applying online, cheaper rates, and also a more competitive selection as more lenders compete for the market. Lenders also benefit by advertising their website and reducing overhead costs.