How safe is it to get personal loans online?
by Abdul Aziz Mondal Loans & Credit 14 July 2021
Over the past few years, virtually every licensed money lender in Singapore has created its own website. This has made it incredibly easy to get personal loans online. Borrowers can simply enter their loan requirements into an online form, together with some basic personal information, and receive tentative approval within minutes.
With such convenience at every borrower’s fingertips, more people are turning to the internet to get personal loans for bad credit. However, there are still a number of potential borrowers (especially older ones) who prefer to apply for a personal loan at a physical office. While this may seem prudent, it is largely an unnecessary precaution.
In this article, we take a look at the three main safeguards in place that ensure the safety of your personal and financial information. We also learn how going digital can help you find the lowest personal loan rates in Singapore.
Three-pronged online safety
Applying for personal loans online protects you in three main ways.
1. Digital security
Every responsible website owner encrypts their site as a defense against hackers. This is especially important with sites that deal with sensitive information like money lenders. When you apply for a personal loan, they use personal identity details and financial data to assess whether someone is eligible for personal loans online.
You can easily check whether a site is encrypted by looking at its URL (website address). Encrypted site URLs begin with ‘https’ where the letter ‘s’ indicates that the site is ‘secure’.
In many ways, information stored on an encrypted website is more secure than hard copies stored in an office cabinet. Even if a hacker accesses the stored digital files on an encrypted site, they will be unable to decrypt and access the data they contain.
2. Physical Assurance
The most common misconception people have about online personal loans is that the entire process can be completed without leaving your home. While this would certainly be convenient in certain cases, it would also make the system susceptible to identity theft and financial fraud.
Singapore government regulations mandate that all identity and financial documents must be verified by a lender in person. So, while you can get the latest personal loan rates from different lenders online and compare them, you will have to visit the lender in person to sign the contract and receive the loan.
You still save time by not physically visiting every single lender and also get the security of a physical check. This prevents others from obtaining personal loans for bad credit in your name.
Also, go through Funding For Fun – A Guide To Eligibility Criteria For Personal Loans
3. Data breadcrumbs
One of the biggest scourges on the money lending industry is the presence of illegal money lenders. Their tactics have become increasingly sophisticated and it is often almost impossible to distinguish between them and a legal lender until it is too late. However, when you apply for a personal loan online, it leaves a trail of digital data that can help you legally.
The authorities can track how an illegal lender approached you via messages on chat platforms, social media, or email. With this information, they are able to locate illegal lenders and deal with them accordingly. In the era, before you could get personal loans for bad credit online, all the interaction would be in person, which made it much harder for the authorities to track them down.
In this sense, you are safer with applying for personal loans online even if you mistakenly contact an illegal money lender.
The lowest rates at your fingertips
Online lending is the ultimate convenience for a borrower. It is also the simplest way to get the lowest personal loan rates.
Legal money lenders that have their own websites let you apply for a loan online and even receive tentative approval without ever leaving your home. You can also access these sites on your phone or tablet when you are on the move.
This means that you can obtain as many up-to-date quotes from as many online money lenders as you wish. Compare them at your leisure and then go with the lender and loan with the best terms.
The process has been made even simpler with the rise of online loan comparison sites. Here, you do not even have to visit different lenders’ sites to get the information you want. They do all the work, completely free of cost and you simply visit the lender with the best loan rates.
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