Online loan at a low service charge, get money in 15 minutes after registration

An online loan is a convenient borrowing option that can be applied for entirely online , signed and received entirely through the internet; approval is data-driven and funds typically reach your bank account within minutes to 24 hours, making it a fast, paper-free alternative to branch based borrowing.

Unlike traditional personal loans, an online lending platform automates identity checks and credit scoring. All interactions happen on a website or mobile app, and customer support is handled via chat or email. Because overheads are lower, many fintechs offer competitive service charges while maintaining instant approval service levels. 

Do you urgently need money but have no funds in your bank account or wallet? When you urgently need money, you may first turn to family or close friends for help, but they may not always be able to assist. An online loan can provide a convenient way to access the funds you need. Read this article to learn more about online loans, including how they work, how to apply, and other important information.
 

Most often, online loans are offered by non bank lenders through digital lending platforms. Customers can complete the application process online, making it a convenient and accessible way to apply for credit without the need for a traditional in-person application process. 

Alternative forms of funding, such as microcredit, are now becoming a useful tool for operational support for small and medium-sized enterprises. In addition, they provide opportunities for individuals without access to traditional forms of credit. Online credits refer to online loans of up to LKR 150,000, subject to eligibility and the applicable service charge.

In Sri Lanka, online credit services are offered through digital lending platforms, allowing eligible customers to apply for credit conveniently through an online process.

Personal loans are commonly used to cover a variety of personal needs. These may include household and daily expenses, unexpected expenses, relocation expenses, and medical needs.

In Sri Lanka, online lending services provide customers with a convenient way to access short-term Credit related assistance. Customers can apply online and select a loan amount based on their needs and eligibility. Before accepting a loan, customers should carefully review the repayment terms, applicable service charges, and total repayment amount.

Advantages and disadvantages of online loan

Merits of online loan

Microcredit can provide a convenient solution for short-term needs. Some key advantages include:

• High speed of decision-making – Online loan applications can be processed quickly, reducing the waiting time for customers. Automated systems can check a potential borrower’s application and provide a decision within 15 minutes from the moment the loan application is received.

• Application from any place – The Internet simplifies the process, making it easier and quicker to apply online. Filling in the questionnaire will take no more than 5 minutes. Only internet access is required, and the application can be completed through a PC, tablet, or smartphone. 
• Transparency of terms – The cost of the online loan is clearly specified. The customer enters the amount they wish to receive, selects the repayment period, and can view the applicable service charge and total repayment amount before proceeding. The customer can then decide whether to accept the loan. 
• Accessibility for customers with different credit histories – Online lending platforms may consider applications from customers with different credit histories. Each application is assessed based on the applicable eligibility and approval criteria. Applicable service charges and the total repayment amount are clearly provided before the customer accepts the loan. 

What is good about online loans?

Using online loans, customers may:

• Build a positive repayment history – Making repayments according to the agreed terms may help demonstrate responsible borrowing behaviour. Future loan eligibility and approved amounts remain subject to the applicable assessment and approval criteria;
• Apply for a quick loan with simple documentation – The NIC is required for identification, while income certificates or additional documents may not be required, subject to the application requirements;
• Complete a simple online application – The application form is designed to be straightforward and may take up to 5 minutes to complete. The customer provides the required information, such as contact details, National Identity Card details, employment information, and income details.

• Apply for a loan without collateral or surety – No collateral or guarantor is required, subject to eligibility and approval criteria;
• Pay the applicable service charge as stated in the loan agreement;
• Repay the loan in a single payment at the end of the agreed term or earlier, according to the terms and conditions of the loan agreement

Disadvantages of an online loan

The limitations of this type of loan include:

• Service charges may vary depending on the selected loan term, which may be up to 30 days. Customers should review the applicable service charge and total repayment amount before accepting the loan;
• A limited loan amount – The maximum online loan amount is up to LKR 150,000, subject to eligibility. Online loans are generally designed to cover short-term and urgent expenses;
• Short repayment term – loans are issued for up to 30 days. A loan extension may be available, subject to OnCredit terms.

Before taking out an online loan, customers should carefully assess the advantages and disadvantages, consider their repayment ability, and review the applicable terms, service charges, and total repayment amount before proceeding.

What consumers need to know about online loan

Convenience is important, but consumers need to understand the product and its terms. It is recommended to consider the following questions before accepting the loan agreement:

What is the product and what are the conditions?

• Some lenders offer loans with fixed repayment terms and service charges. Customers should review the terms carefully before accepting a loan.
• Every time you apply for a loan, your credit information may be updated, and the loan may appear in your credit report.
• To help prevent unauthorized use of your personal information when applying for credit online, keep your personal and Credit information secure and do not share sensitive information with unauthorized persons.
• Customers should also review the applicable process for resolving any questions or issues related to the online loan, repayment, or cancellation.

Online lending provides customers in Sri Lanka with a fast and convenient way to access funds. Using the OnCredit loan calculator, customers can review relevant loan information and apply online from anywhere in the country with internet access.

Even though the reasons may differ from one country to another, people may choose to obtain credit online for several purposes, including:

• Bill payments – Online credit may help customers manage urgent household bills, such as electricity, water, or other essential expenses. However, customers should consider their ability to repay before using a loan for these expenses;
• Emergency expenses – Unexpected expenses, such as an urgent home repair or the sudden breakdown of an essential appliance, may create a need for short-term Credit related assistance before the next salary date.

• Essential purchases – There are situations where additional funds may be needed, such as purchasing essential medicines or preparing for school-related expenses.

If you are considering obtaining credit online, it is important to assess your repayment capacity and ability to repay the loan within the agreed term. Customers can use the OnCredit loan calculator to review the applicable service charge and total repayment amount before proceeding.

Since online loans are generally designed for short-term needs, customers should carefully review the loan term, applicable service charge, total repayment amount, and repayment date before accepting the loan.

Microcredit refers to short-term loans that can provide customers with access to funds for personal and short-term needs. Loan amounts may range from LKR 2,000 up to LKR 150,000, subject to eligibility and approval criteria.

OnCredit offers microloans for a variety of personal needs, including:

• Family expenses
• Travel or holiday expenses
• Home renovation expenses
• Wedding expenses
• Other everyday expenses

In other words, you can obtain a loan easily and conveniently through an online application process without going through time-consuming procedures.

Why should you apply for an online loan through the Internet?

• Apply for credit online from any place with internet access;
• Save time by completing the application online;
• Receive the approved loan amount directly to your registered bank account.

To get a loan for personal needs, simply complete the OnCredit online loan application. Once approved, the loan amount will be credited to your registered bank account.

After OnCredit reviews your online loan application, which may take up to 15 minutes, and your application is approved, you can access funds for various personal needs, such as expenses before your next salary, home repairs, purchasing essential equipment, education-related expenses, or other personal expenses.

To apply, customers must meet the applicable OnCredit eligibility and application requirements. A National Identity Card (NIC) and an active bank account are required. Additional requirements may apply depending on the application.

Online loans are generally granted for a short repayment period. The applicable service charge is calculated according to the loan terms, and the first loan amount is up to LKR 50,000, subject to eligibility and approval.

Through a simple and flexible application process, OnCredit offers online loans that can be used for holidays, wedding expenses, home-related expenses, eunexpected personal needs, and other everyday expenses.

What should you do before taking out an online loan?

Online loans can help cover urgent and unexpected expenses.

However, it is important to understand your responsibilities before borrowing. Here are some tips to keep in mind:

• Start by choosing a loan company. Research the company, customer reviews, and its official social media pages;
• Make sure you understand all the terms and conditions before accepting the loan agreement;
• Before taking out a loan, make sure you can meet the repayment terms;
• Be sure to pay the loan in full on time, as late payments may result in additional charges or late fees;
• Make sure you clearly understand how you will repay the full loan amount;
• If early repayment is available, review the applicable terms before proceeding.

Use these tips to make an informed decision when considering an online loan for urgent or unexpected Economic requirements.

How OnCredit Works

OnCredit offers

• Online loans for a variety of personal needs;
• Credit without collateral or guarantors, using a National Identity Card (NIC) or valid Driving Licence, without leaving your home;
• Clear information about applicable service charges and repayment terms before accepting the loan.

Online loan eligibility requirements

• A valid National Identity Card (NIC) or Driving Licence;
• Applicants must be 18 years of age or older and have a regular source of income;
• An active personal bank account for receiving the approved loan amount.

How to apply for an online loan with OnCredit

• The customer completes the online loan application, and the application process can be completed within 15 minutes;
• The application and required information are reviewed as part of the verification and approval process;
• The customer may receive a loan decision within 15 minutes, subject to successful verification and the application requirements;
• Once the application is approved, the loan amount is credited to the customer’s registered bank account;
• Repeat customers can also apply online, subject to eligibility and approval criteria.

Amount and cost of credit

• OnCredit provides first-time customers with loans of up to LKR 50,000, subject to eligibility and system approval
• The applicable service charge depends on the loan amount and the selected loan period
• The loan term can be extended by paying the service charge for the days the loan has been used.
• In the case of early repayment, the applicable service charge will be calculated based on the actual loan period. 
• An example of the loan calculator calculation: for a loan of LKR 3,500, the applicable service charge is calculated based on the loan amount and selected loan period. The total service charge and repayment amount will be clearly displayed in the loan calculator before confirmation. The company does not charge any additional hidden fees.
• If the Borrower does not repay the loan on time, late fees and other liabilities may apply in accordance with the loan agreement.
• A debt-enforcement process may be initiated or claims may be transferred to third parties; 
• The applicable service charge on the use of borrowed funds is charged for each day of use of the borrowed part of the loan amount up to and including the date of actual repayment of the entire amount of the loan;
• Late fees may be applied on the applicable overdue dates based on the outstanding loan amount, in accordance with the loan agreement.