The Comparison Between the Private Money Lenders and Banks

Private money lander is the person who provides loan individually and has no affiliation to the bank or any financial institute. Normally the loans are provided by the banks or finance companies, which work through brokers. These brokers have banks or companies as the source of funding. The brokers work for other companies and have loan terms provided by those companies. Most of the time these terms are hard for people who take loans.

Private money lenders are a preferred way of borrowing money these days as they provide superfast cash on simple and easy terms. You can get the cash from few minutes to few days after you agree to the loan terms. There is less paperwork involved if you borrow from the private moneylenders unlike the banks which ask you to provide loads of documents to prove that you can pay the loan back. Another major advantage of borrowing from the private money lenders is that there is no issues of bad credit. In most cases, you can get a loan despite having bad credit. Most of the lenders do not check the credit score or credit history https://easycredit.com.sg.

Seeing the increasing demand of private moneylenders, governments have introduced new rules and laws to regulate the terms and conditions to facilitate the borrowers. The government, on national and state level issues licenses to the private lenders, for which they have to take tests and training. So the borrower have nothing to worry about and knows that he/she is dealing with an experienced lender.

The loan terms of the licensed moneylenders are easier as compared to other lenders. They have flexible loan structure and can change the loan terms when they feel like there is need to restructure the loan. Normally the private lenders have higher interest rates as compared to the ordinary lenders, because of the high risk involved.In most of the cases, there is not even any collateral involved against the loan, so there is no guarantee about the repayment of loan. They just have to use their experience for the assessment of the borrower’s financial capacity.The terms and conditions vary from lender to lender and there are no fixed terms while borrowing from private lenders.

There are no personal guarantees needed in case of private money lenders, as it is required by the banks and finance companies. In short, private money lenders are better than the traditional money lenders in many ways. The loan is repaid in installments and the time period of repayment is shorter than the bank loans. But you can negotiate and select the time period which you prefer. You can get the loan with collateral and without collateral as well. It depends on the lender, amount of loan and your financial situation.

If you are in need of emergency funds and you can’t go to the bank because of bad credit, and you need financing within 2 weeks, then you should find a reputed licensed moneylender. There are thousands of moneylenders on the internet. You can easily search online for a good licensed moneylender and compare the interest rates with other lenders.

Leave a Reply

Your email address will not be published. Required fields are marked *