Every year, banks make billions of dollars by lending money. It is not very easy for them to approve people and loan money to them. Long hours of hard work are required for this to happen. The applicants need to be screened and only a select few can borrow the money. Federal regulations and laws need to be followed in order to the banks to loan money without facing lawsuits and criminal charges. Bookies lend money illegally every year and make lots of money. Unfortunately, they may face criminal charges and lawsuits if they are caught participating in the business where people loan money. Online loans are given only by experienced banks who have years in the lending industry. They are able to make profits out of online loans but they face lots of possible problems.
Lending money requires banks to employ large offices of employees. Banks lend money offline in a fashion that works well. Certain people need to make the applications. The applications need to ask the right questions to allow the company to know who they can lend money to. Other employees need to be lawyers and make sure that the application is legal. Many other employees will look at the credit scores, amount of debt and income of applicants and decide if lending money to them is a good idea or not.
Bookies lend money by charging ridiculous interest rates and threatening those who do not pay them. They do not follow any laws. They discriminate and do not give fair treatment to everyone. These face jail time, fines and other penalties if they are caught. The government carefully regulates who lends money and how they lend it. This is because they want to make sure that people are treated fair. Without lending laws, bookies and other people would prey on innocent citizens and destroy their lives.
Can you loan money online?
Extending online loans should only be done by the lending experts. It requires attorney and lawyers to carefully watch and monitor the process. It also requires a lot of verification to make sure that applicants are telling the truth. Any person would be able to get on the computer and enter bogus information to get a loan. The government has rules requiring lending to be done in certain ways in certain states. Lending online needs to follow the rules of each state that the borrower is located in. This means that the lender needs legal advice to know exactly how to lend legally to Internet users who may be anywhere in the country. Races, genders, class and location of people are not supposed to be used to judge loan applications or to give certain treatment. If this is violated, fees and penalties may be charged. It is possible for employees who help to lend the money to face jail time.
There are billions of people in the world with an Internet connection. Most of them would love the idea of online loans. There is potential for huge profits in this business. However, it is very risky. Only the experts who loan money and have done this for years and have lots of lawyers should dare to try to make money in this online business. If they are not careful, they will be viewed the same as bookies or criminals.