For those who bank with virtual banks, applying for a loan online is just another aspect of their normal banking experience. For those who do business with traditional brick-and-mortar banks, the normal procedure for loan applications is to make an appointment with a loans officer, bring in your financial information, and be told on the spot by the loans officer whether you have qualified for the loan or not. Then, after you have signed multiple long forms, discussed the terms of the loan, and submitted all the documentation required by the bank, the money is deposited in your bank account.
Online loan applications are somewhat different. The initial application will be filled out online, and then you will need to either mail copies of your financial information to the bank, or scan the appropriate documents and email them to the bank. There will be a list of what documentation you will need to provide with the loan application form, so you will be aware of what is required. The bank may ask for a copy of your most recent tax return, proof of income in the form of recent pay stubs or proof of self-employment, a copy of your photo ID, bank statements to show how much money you have, and a summary of your assets. They will also do a credit check. This is usually a hard credit check, which can slightly impact your credit score, so make sure you don’t apply for a loan unless you are really serious.
Once you have fulfilled all the requirements for the loan application, have passed the credit check, and have been approved for the loan, the money will appear in your online account to be used as required. The vast majority of the process can be done at any time of the day or night, unless there is a need for you to speak to a bank representative, so you don’t have to rearrange your life to get to the bank during banking hours, and you will probably pay less interest on your online loan than you would with a traditional bank.