Acquiring a property, buying a car, traveling to the end of the world or for any unforeseen major expense, the personal loan can help you meet significant financial needs according to your repayment possibilities. Why use the services of a private lender for a personal loan, rather than a financial institution?
The disadvantages of loans from a financial institution
As a consumer of a service such as a personal loan, it is of course better for you to compare the various possible remedies. Financial institutions or private lender? The main drawbacks of loans taken out with financial institutions are that they finance loans with extreme caution, which means that many people, especially people who have already had financial problems, are not eligible to receive them. The other disadvantage is that lending money generates such bank management fees that financial institutions generally only lend large sums that are more than $ 1,000. For lower sums, they authorize overdrafts which are, on the other hand, adorned with significant interest which can affect the borrower’s good repayment.
What is a personal loan from a private lender?
Quickly, efficiently and securely, a personal loan can be taken out with a private lender who will in fact be a private organization. Without the company having access to your personal credit history, you can borrow small sums of money (usually $ 300 to $ 1,500), even if you are already in debt, without having to have of guarantor. The great advantage of contracting a personal loan from a private lender is also the speed with which credit is received (on the same day as the submission). However, keep in mind that this is still a loan and that it is subject to interest rates which mean that the contractor must know in advance that he is able to repay in the short term this loan and especially not to get into debt.
How it works?
Who says emergency says proximity and it is well the key word of the private companies of personal loan which do everything possible to facilitate the task with the private individuals. Indeed, through their website, these companies offer simple access to an online application. Accessible 7 days a week and 24 hours a day, all you need to do is complete the procedure via a computer. This request requires:
- Your personal information, identity, contact details and proof of residence.
- Your references, ie the coordinates and identities of two relatives.
- Your information on your professional situation as well as the contact details of your company if you are an employee.
- Your documents, pay stubs, bank statement, proof of residence, sample check, proof of identity and membership form (contract).
All these documents are necessary, not to assess your creditworthiness for the loan, but so that the company can issue an opinion on your real need but also so that it has the guarantee of your repayment of the loan requested.
A private lender yes but not an individual
As we have seen, having recourse to a private lender when you need urgent money is a simple and quick solution, which is however preferably carried out with a private company specializing in personal loans. Why? Lending money between individuals, which is also a solution in case of urgent money problem, can cause other problems than the basic money worries. Indeed, many people ask their loved ones to lend them a sum of money and then find themselves unable to repay quickly, which often leads to many conflicts.