By HussaiN 
Are you in need of cash to fund your emergency expenses or business ventures but hesitant to apply for traditional bank loans? Worry no more as online loans in Sri Lanka have become increasingly popular as a convenient and hassle-free solution for obtaining financial assistance. In this comprehensive guide, we will discuss everything you need to know about online loans in Sri Lanka.
What are Online Loans?
Online loans are a type of personal loan that you can apply for and receive online through a lender’s website or mobile application. This type of loan is typically unsecured, meaning you do not need to provide collateral to obtain the funds. Instead, the lender assesses your creditworthiness through your credit score and other financial information.
The Advantages of Online Loans
There are several advantages to applying for an online loan in Sri Lanka, including:
- Convenience: You can apply for an online loan from the comfort of your home or office, without having to visit a bank or lender in person.
- Faster Processing: The online loan application process is typically faster than traditional loan applications, and you can receive the funds within a few days.
- Flexible Terms: Online lenders offer a range of loan terms and repayment options to suit your needs.
- Lower Interest Rates: Some online lenders offer lower interest rates than traditional banks, making them a more affordable option for borrowers.
Types of Online Loans in Sri Lanka
There are several types of online loans available in Sri Lanka, depending on your financial needs. Here are some of the most popular types:
Personal Loans
Personal loans are a type of unsecured loan that you can use for any personal expenses, such as home renovations, medical bills, or travel expenses. Personal loans in Sri Lanka typically range from LKR 25,000 to LKR 2,500,000, with repayment terms ranging from 6 months to 5 years.
Business Loans
If you are a business owner looking for financial assistance to fund your business ventures, you can apply for a business loan online. Business loans in Sri Lanka typically range from LKR 100,000 to LKR 5,000,000, with repayment terms ranging from 6 months to 5 years.
Payday Loans
Payday loans are a type of short-term loan that you can use to cover your emergency expenses until your next payday. Payday loans in Sri Lanka typically range from LKR 10,000 to LKR 100,000, with repayment terms ranging from 1 week to 1 month.
Education Loans
Education loans are a type of loan that you can use to fund your education expenses, such as tuition fees, accommodation, and textbooks. Education loans in Sri Lanka typically range from LKR 100,000 to LKR 5,000,000, with repayment terms ranging from 1 year to 10 years.
Gold Loans
Gold loans are a type of secured loan that you can obtain by pledging your gold jewelry or coins as collateral. Gold loans in Sri Lanka typically range from LKR 25,000 to LKR 5,000,000, with repayment terms ranging from 3 months to 3 years.
Vehicle Loans
If you’re planning to purchase a car, motorcycle, or other vehicle, you can apply for a vehicle loan online. Vehicle loans in Sri Lanka typically range from LKR 100,000 to LKR 5,000,000, with repayment terms ranging from 6 months to 5 years.
Home Loans
Home loans are a type of loan that you can use to purchase a house or renovate your existing home. Home loans in Sri Lanka typically range from LKR 1,000,000 to LKR 25,000,000, with repayment terms ranging from 5 years to 30 years.
Medical Loans
If you need to cover your medical expenses or undergo a medical procedure, you can apply for a medical loan online. Medical loans in Sri Lanka typically range from LKR 50,000 to LKR 5,000,000, with repayment terms ranging from 6 months to 5 years.
Wedding Loans
Wedding loans are a type of loan that you can use to fund your wedding expenses, such as venue rental, catering, and decorations. Wedding loans in Sri Lanka typically range from LKR 100,000 to LKR 5,000,000, with repayment terms ranging from 1 year to 5 years.
Agricultural Loans
Agricultural loans are a type of loan that you can use to fund your agricultural projects, such as purchasing equipment or fertilizers. Agricultural loans in Sri Lanka typically range from LKR 100,000 to LKR 5,000,000, with repayment terms ranging from 1 year to 5 years.
The Requirements for Online Loan Applications
Before applying for an online loan in Sri Lanka, there are certain eligibility criteria and required documents that you need to meet. Here are some of the most common requirements:
Eligibility Criteria
- You must be a Sri Lankan citizen or permanent resident.
- You must be over 18 years old.
- You must have a stable income source or employment.
- You must have a good credit score and financial history.
Required Documents
- National Identity Card (NIC)
- Proof of income, such as salary slips or bank statements
- Proof of address, such as a utility bill or rental agreement
- Other documents specific to the loan type, such as vehicle registration documents for a vehicle loan or wedding vendor quotations for a wedding loan.
The Process of Applying for Online Loans
Now that you know the different types of online loans and the requirements for applications, here’s a step-by-step guide on how to apply for an online loan in Sri Lanka:
Choosing the Right Lender
Do your research and compare the interest rates, repayment terms, and customer reviews of different online lenders to find the best fit for your needs.
Filling out the Application Form
Once you’ve chosen a lender, fill out the online application form with your personal and financial details.
Providing the Required Documents
After filling out the application form, you will need to upload the required documents, such as your NIC, proof of income, and proof of address.
Waiting for Approval
Once you’ve submitted your application and documents, you’ll need to wait for the lender to review and approve your application. This process usually takes a few business days.
Receiving the Loan Amount
If your application is approved, the lender will disburse the loan amount to your bank account. Depending on the lender, this process can take anywhere from a few hours to a few days.
Tips for Getting Approved for an Online Loan
To increase your chances of getting approved for an online loan in Sri Lanka, here are some tips to keep in mind:
- Maintain a good credit score and financial history.
- Make sure you meet the eligibility criteria and have the required documents.
- Don’t apply for multiple loans at the same time, as this can negatively affect your credit score.
- Choose a loan amount and repayment term that you can realistically afford.
- Be honest and accurate when filling out the application form and providing the required documents.
Best online loans in Sri Lanka
There are several microfinance organizations in Sri Lanka that offer online loans. Some of the best microfinance organizations in Sri Lanka that issue online loan are:
- LOLC Finance
- BRAC Sri Lanka
- Lanka Microfinance Practitioners’ Association
- SANASA Development Bank
- Sarvodaya Development Finance
It’s important to compare the interest rates, fees, and other terms and conditions before applying for a loan. It’s also a good idea to check the reputation of the microfinance organization and read reviews from other customers before making a decision.
HussaiN is a full-time professional blogger from India. He is passionate about content writing, tech enthusiasts, and computer technologies. Apart from content writing on the internet, he likes reading various tech magazines and several other blogs on the internet. Email ID: [email protected]