Digital Lending: The benefits of borrowing online

May 10, 2023

Digital technology has revolutionised various aspects of our lives, including how we borrow money; it’s no surprise to see ‘digital lending’ become the new buzzword in fin-tech.

Traditional lending processes often involve lengthy paperwork, time-consuming procedures, and physical visits to stores. However, with the rise of digital lending platforms, borrowers can now access convenient and efficient loan services from the comfort of anywhere!

In this latest MoneyShop blog, we will explore the benefits of online borrowing and how digital lending is reshaping the borrowing landscape.

1. Less Documentation

One of the main advantages of digital lending is its convenience. Instead of spending hours at a bank or credit union, individuals can now apply for loans online at any time that suits them. In addition, the accessibility of digital lending platforms allows borrowers to access a wide range of loan products, compare interest rates, and choose the most suitable option for their needs, all with just a few clicks.

2. Processing Times

Digital lending platforms are significantly more straightforward. Traditional lending involves extensive paperwork, which could be time-consuming and frustrating. With digital lending, a loan application can be completed within minutes from the touch of a mobile screen on your living room sofa. You just need the relevant details, a computer or smartphone, and an internet connection.

3. Faster approval and disbursement

Digital lending platforms leverage advanced algorithms and automated processes to evaluate loan applications swiftly. This enables borrowers to receive loan approval and disbursement much faster. Sometimes, borrowers can receive funds within hours or even minutes of approval. This speed is particularly beneficial during emergencies or when immediate financial support is required.

Apply for an emergency loan with MoneyShop.

4.Technological advantages

Digital lending allows you to use the latest technologies to optimise your research into what loans you should apply for. Deals can be reviewed and compared on online platforms so that you can choose the package that’s best suited for you. In addition, conducting your loan application online gives your lenders the convenience of directly connecting to your bank account through online banking avenues.

5. Accessing Multiple Lenders

One major convenience of managing your finances online is that you can apply for loans from multiple lenders, giving you a list of approved deals from which you can select the loan with the most favourable conditions. This is far more desirable than the timely chore of making trips and phone calls to various banks and loan providers.

6. Credit score-building opportunities

For individuals with limited credit history, or less-than-ideal credit scores, digital lending can offer opportunities for credit score building. This can open doors to better future loan and financial possibilities.

Thinking of getting a loan through a digital lender?

We are the leading loan provider among money lenders in New Zealand, helping Kiwis since 1993. Contact us or apply for a loan right now with our online platform.
We offer a variety of online loans that anyone in New Zealand can apply for. These include car loans, emergency loans, wedding loans, holiday loans, debt consolidation loans, and unsecured loans.

*MoneyShop loans are subject to responsible lending checks and standard approval criteria. Interest rates and fees vary based on your loan type and amount. For full details, please see our Privacy Policy, Terms & Conditions, and Costs of Borrowing page.

This information is general in nature and isn’t financial or professional advice. MoneyShop does not guarantee the accuracy or completeness of this content, and we recommend seeking personalised advice before making financial decisions

Our costs and terms

Loan amount

Borrow between $200 and $20,000, depending on your situation. Example: $3,000 over 78 weeks = $58.87/week.

Loan terms

Choose a term from 3 months to 3 years. Repay weekly. We’ll show your full schedule upfront.

Interest rate

The interest rates are 29.95% for loans with security or refinanced from existing loans, new unsecured loans are also 29.95%. The rate is fixed for the whole of the contract. Interest charges are calculated by multiplying the unpaid balance at the end of the day by a daily interest rate. The daily interest rate is calculated by dividing the annual interest rate by 365. Interest is charged when instalments fall due.

Default interest rate

MoneyShop doesn’t charge default interest. If your account falls behind, a $1 daily arrears fee may apply until things are back on track. Reversed payments incur a $5 fee, and missed‑payment contact may involve a letter fee (up to $50), a $5 phone fee, or an $80 + GST home‑visit fee. Any third‑party recovery costs are passed on at cost.

Establishment fees

One-time setup fee based on loan size:

Fee	Cost
$200 to $499	$65.00
$500 to $800	$160.00
$800 to $5,000 for three years or less	$300.00
$800 to $5,000 for three years or less	$300.00
$5,000 to $15,000 for three years or less	$310.00
Over $15,000 for more than three years	$455.00

Some loan setup costs come from third parties — such as credit checks, PPSR searches, and security‑registration fees — and these are passed on at cost. Your account also has a daily administration charge of 55c while it’s open. We send statements every six months, and extra statements are free by email or $5 if printed. If you repay your loan early, an administration fee of $50 (averaged) may apply, along with any third‑party deregistration costs.

Rate type

Your rate stays the same for the whole loan. No surprises. No hidden fees.

Repayment frequency

Pay weekly. Example: $1,500 over 52 weeks = $44.83/week.

Example: Borrowing $3,000 over 78 weeks

Weekly repayment: $58.87
Total repayments: $4,592.86
Includes: Interest, $300 establishment fee, $0.55/day admin fee
Does not include: Any optional or default-related fees

This example assumes a fixed interest rate of 29.95% p.a., no missed payments, and no early repayment. Actual costs may vary depending on your loan amount, term, and repayment history.

Want to check your rate with our personal loan calculator?

Learn more about loan costs, interest rates, and fees on our Cost of Borrowing page.