Bank Loan

Although not long ago, a bank loan was the most prevalent and popular type of loans available, today a greater variety of options and benefits has caused some stiff competition for traditional bank lending procedures. Banks have been forced to diversify their products in order to compete with more innovative lenders and loan products available to consumers today. As a result, today’s potential consumer has countless options to choose from. When it comes to the issue of whether or not to lend with your bank, it is useful to take an objective assessment of the pros and cons of a bank loan. Today, people use a bank loan for personal reasons of every kind, and also use it for their business ventures.

Even today, banks continue to generate their multi billion dollar share of loans every year. Banks tend to be especially popular with large ventures such as financing huge commercial properties, constructions, or corporate transactions. But for the every day consumer, their benefits can be less pronounced. The greatest benefit of lending with a bank is probably the fact that they have very low interest rates. Many people feel comfortable lending with their bank because the faces there are already familiar. Additionally, many people, especially computer savvy individuals that handle many of their financial transactions online, prefer the idea of being able to handle their banking and lending from one web interface.

The disadvantages of a bank loan include long waiting times and long loan processing times. Bank processors are often overworked, and getting approved can be a lengthy process. Business hours are limited, and waiting for a loan officer can take hours out of your day. Moreover, banks have the most stringent approval policies, disabling many people from lending with their bank. Small businesses are inconvenienced by extensive documentation and long business plans. Often such frustrated customers end up getting a bank loan for personal reasons when they really needed a business loan product.

It is important to remember that today’s consumer has many choices when choosing a lender, including banks, finance companies, and web lending. Doing one’s research before making an important financial decision is always a good option.

Bank Lending

Bank lending has been faced with a new wave of competition in the last decade as a surge of online lending companies and their new benefits have captured the attention of many prospective financial consumers. This has been particularly difficult for banks because of the convenience factor web companies. These companies offer expedient services and often require less paperwork. Banks, on the other hand, tend to be the most formal and often also the most stringent as far as bank lending procedures go.

There are many reasons that banks attract customers. Often, people already have a relationship with their bank based on their prior banking needs. They feel familiar and comfortable dealing with a name and people they are used to seeing. Banks are also the most traditional form of lending. The parents of today's generation often did not have many choices other than a bank. The internet did not exist, and smaller financial companies were rare. As a result, banks are often the first source that comes to mind with a person needs a loan. Banks often offer some of the lowest interest rates available.

There are many drawbacks to bank lending also, especially for the modern consumer. Where time is one of the most valuable commodities for today's business or individual, banks have the lengthiest lending procedures. They have extensive paperwork and documentation requirements. Additionally, due to the volume of bank lending loan requests they receive compared to relatively few associates, long waiting times are experienced by potential customers. Additionally, customers are limited to the bank's business hours, which can often create a schedule conflict. Web companies, by contrast, are available 24 hours a day