Everyone knows that online loans in Ohio have become more prevalent throughout the past few years. Most lenders will gladly save the cost of office space and hiring dedicated staff if they know they can provide the same type of loan online. Most people associate the online lending environment with payday lenders and other types of short term loans. This is far from the case though. Did you know that more Ohioans apply for loans online versus at their neighborhood bank or credit union? As of just a few years ago, advanced lending software has made it much easier to handle the process online versus at a retail location. In addition to local lenders it’s also possible to get an online installment loan or personal loan from your local bank or credit union. Let’s get into the details of why it’s now much easier and more acceptable to get online loans in Ohio.
Retail lenders have been operating in Ohio for decades. There have been dozens direct lenders in Columbus and Cleveland for years that fund payday loans and other types of cash advances. We all know there are hundreds of companies all throughout the state that fund Ohio payday loans. These lenders are mainly mom and pop shops who rely on word of mouth and great customer service to bring in new applicants. That’s all changed over the past few years though with the increased amount in online lenders in Ohio. As of 2017 it’s much easier and quicker to be approved for an installment loan online versus at a local bank or credit union. The reason for this is because most banks and credit unions find it easier to process loan applications online. There’s far less paperwork and they don’t need to accommodate someone in person. Another factor is that there’s no longer a need to pay a mortgage or rent for a physical office in Ohio.
Even with these advantages, there are downfalls if banks continue focusing on online loans in Ohio versus the traditional method. When someone applies for a loan online, the lender looses the face to face conversation and interaction. It can be difficult to gauge an applicant if they are never seen in person. Also, many apply for Ohio payday loans under fake names and use other incorrect information. There are also numerous banking laws in place that protect consumers and lenders from fraud. We advise all readers to read about the latest lending changes that may affect banks and credit unions in Ohio. It’s much easier to detect fraud and other issues when meeting someone in person versus having them approved online. With the recent increases in identity theft, we’re seeing more and more lenders fall victim to people using false info when submitting an application for an Ohio online loan.
One hybrid system that we heard about in Ohio seems to be doing pretty well. A client will apply for and be approved for an Ohio payday loan or installment loan online. The difference though, is that they need to still go into a local regional location to sign documents and get their cash. This has many benefits both the lender and applicant. The lender has more piece of mind as they know the person exists and is not trying to commit identity theft. The consumer knows the lender is real and they can also get cash for their payday loan that same day. It seems this new method of online loans in Ohio is the best course of action. Let’s hope more companies roll out a system like this so applicants and lenders can have a better process when it comes to Ohio payday loans and installment loans.