Taking a loan has never been easier. Gone are the days, when one had to que outside a bank or financial institution in order to apply for a loan. Along with banks there are many private loan lenders who also specialize is disbursing loans. The private loan lenders may be a group of people or an individual who are known to disburse loans
The following are the reasons, why more and more people are opting for private loan lenders on and above the banks.
The entire application process in case of a private loan lender is simpler. Their terms and conditions are simpler than that of a bank. More over the legalities binding the borrower with the lender is far less in case of a private loan lender when compared with a bank.
Banks are extremely conservative when it comes to granting loans. They generally scrutinize all loan applications in complete details before accepting them. They give a lot of emphasis on the credit ratings and the credit worthiness of the individual who is applying for the loan. In case of a private loan lender the norms are slightly relaxed. They are more flexible and are fine with disbursing the loan to even those with low or bad credit ratings.
The scrutiny in case of banks granting loans is far rigorous. They do a thorough check of the applicants’ bank transactions for the last 1 year before finding him as a satisfactory candidate to take loan. A single cheque bounce can negate your chances of getting a loan. Such formalities are far relaxed in case of private loan lenders. They do a basic check on the candidate’s credit status and earning capacity and take their decisions based on that.
Many people opt for private loan lenders as the interest rates asked by them are far less than in case of banks. Moreover, the private loan lenders also have flexible repayment plans. The applicant can opt for interest only loan, fixed rate loan or flexible rate loan, as the case might be.
Private loan lenders offer an extended period for loan repayment. These added advantages over and above the bank loans make them tempting and lucrative. The fact , that private loan lenders offer loans to those applicants who have a previous history of defaulting makes them the only option for many applicants.