Borrowing online

Online borrowing is growing rapidly. The technology has developed to allow secure and private transactions to take place over the internet. This has led to huge increase in customer trust of the internet as a place to manage their finances. It is also an extremely good place to conduct loan research as you can get information from many lenders quickly and accurately and rates are often lower online in recognition of the savings it brings to the lender.

In the last year, the sale of financial services over the internet has more than doubled. This is a trend that is set to continue well into the future. There have also been important changes in the law that have allowed all this to happen. Electronic signatures and other methods of concluding contracts online have allowed far more business to get done online. There are also significant cost savings involved with not having to have everything done on paper. While many instances still require paper copies, the increased convenience is already making a huge difference. Both shopping around, applying, and being approved are now, faster, easier and cheaper than before.

Research is now suggesting that over a third of all adults would shop online for a loan. This is a huge increase on the previous year's results. More than half of those aged 18 - 24 would use the internet and men are more willing to do so than women with men being 50% more likely to do so. Those aged 50 and over were the least likely to use the internet to buy a loan.

Security considerations

The traditional consumer safeguards that apply across the board, also apply to online lending. These include a cooling off period of fourteen days, during which time, if you change your mind, you can cancel the online loan without a penalty. Digital encryption technology has also gotten to the point where most people feel secure dealing with reputable companies online. Passwords and other security measures are now well understood by customers and they are being used effectively. There is a strong general belief that the security of online banking is improving rapidly.

So are online loans better?

Most people understand that at the end of the day, a loan bought online and a loan bought at your local bank branch are essentially the same thing. The only difference is the method of buying it. There are a few things to be wary of online, such as loan scams or identity theft, but dealing with reputable websites and being careful with your personal information should generally keep you safe. Steer clear of amazing offers from people you have never heard of. There is also the growth of special online rates, where the consumer is given a better rate online than over the counter because of the cost savings online commerce offers the bank.

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Joseph Kenny is the webmaster of the loan information sites www.selectloans.co.uk/ and also www.ukpersonalloanstore.co.uk. At the Personal Loan Store you can find some of the latest online loan offers explained in detail.