Taking a loan from a bank is a cumbersome process. It would be best if you had a suitable credit score, or the loan never gets sanctioned.
As a result, people choose to take loans from a money lender. A loan from a lender is also a good option if you need to arrange for finances immediately and cannot wait for the bank to process the application.
However, you must verify the background and only consult a reliable lender like Bugis Credit.
If you want to know the advantages of taking loans from a money lender, here is the information.
You can get the money you need fast
Banks have lengthy loan processing time, and you may have to wait for weeks or months to get cash in hand.
Besides, there is always a chance of your loan application getting declined for various reasons.
On the other hand, money lenders can provide you with cash in just a few minutes.
This can be a massive advantage if you need money urgently.
There are a Few Loan Requirements
Unlike banks with a long list of loan eligibility criteria, a money lender has few requirements.
For example, they may only require that you be 18 years or older, have a bank account, and be able to provide proof of income.
This can be a huge advantage over traditional banks, which often require a credit check and may not approve loans for people without perfect credit.
There is a Wider Range of Loan Products as Compared to Banks
If you need a loan for a specific purpose, like home improvement or a car purchase, a money lender will likely have a product that suits your needs. Moreover, banks offer only one type of loan.
Lenders have a range of products, including personal loans, business loans, and even payday loans.
They Are More Flexible With Their Lending Criteria Than Banks Are
They are more flexible with their lending criteria than banks are. It means they may be more likely to approve a loan for you, even if you don’t have perfect credit.
They may also be more flexible regarding the amount of money you can borrow, the repayment terms, and the interest rates.
You control the process when you take a loan from a money lender.
Even though you have a lower credit score, you can ask for a lower interest rate by offering collateral.
When borrowing from private money lenders, you always have the upper hand on every decision without making a compromise.
Many like Bugis Credit are more flexible with lending criteria as they want better relationships with borrowers who can bring repeat business opportunities.
Lower Interest Rates
National and market forces generally determine interest rates, and this is especially true for banks.
However, you will find interest rates varying with private lenders.
One of the reasons they often charge lower interest rates is because they want to make the loan product attractive to customers and keep ahead of the competition.
Also, money lenders have established strategies to lower overhead costs, allowing them to charge lower interest compared to banks.
These are five benefits of taking a loan from a money lender.
However, it would be best to be careful while selecting one, as all lenders are not created equal, and you may be scammed.