What is an Online Bank Loan?

An online bank loan is a way to borrow money from a bank that conducts such transactions over the Internet. This enables the individual to submit a loan application in an expedient manner, without having to apply in person. There are several types of online loans. An online bank loan may consist of online mortgage loans or home equity loans, to name a few.

In many cases, the application for an online bank loan takes a short amount of time. Many banks can process the application in less than a half hour. Some individuals prefer applying for an online bank loan due to the freedom it allows. There is no verbal communication between bank representatives and applicants unless requested. Customer service via the telephone may assist if a customer requests it.

A prospective borrower can typically save an application and return to complete it later. To do this, an online bank customer generally needs to set up a password with the bank website. Banks use encryption security measures to ensure all transactions are conducted in a safe and completely confidential manner. After the application has been approved for the online bank loan, the borrower will need to close the loan by visiting the bank in person. Some banks will send a representative to the customer's home to finalize the loan.

A common type of online bank loan is the home equity loan. In such a loan, collateral will be needed to borrow a specified amount of money from the bank. Basically, the homeowner is offering the value or equity of his home as a security pledge. This option is generally chosen by homeowners who need to borrow a large sum of money.

An adviser from the bank may contact the applicant after he has submitted the online form. The adviser will typically offer suggestions or answer any inquiries the applicant may have. He may then walk the customer through the next phase in the application process.

Mortgage online bank loans may help a person refinance as well. Some of the options for a mortgage loan include a fixed-rate loans and adjustable-rate loans. Automobile loans are another type of loan that customers can apply for online. This may involve online bank loans for used and new vehicles. Many people prefer the online method, as in most cases there is no application fee and fixed rates tend to be lower.