- June 22, 2020
How Should You Choose A Lender While Planning For Loans
If there is something in life that is bound to happen, it is most likely going to be acquiring a loan.
You may or may not get married.
You may or may not ever have children.
You may or may not climb Mount Everest.
However, you will acquire a loan at some point in your life.
Planning a wedding is an expensive affair so that you could need a loan for that.
Having a child comes along with an additional financial burden so that a loan can come quite handy.
Going to Nepal and trekking up to the highest peak in the world is not economical. Still, a loan can make the journey seem possible.
So, a loan is a part of our lives; a part that we cannot do without.
The decision to acquire a loan can be a complicated one. With the amount, the public, and private lenders, who are willing to provide you with financial assistance, choosing the right one is a daunting task. The fact that the latter is more liberal with obligations may tip the scales in their favor.
Let me help you in making the choice of choosing between lenders a little more comfortable than it frankly is.
Here are four parameters that can guide you in your decision.
Do your Needs Align
The foremost thing to look at in a lender is your needs. Every lender does not provide every category of loan. So, you have to do your homework and see which one aligns with your needs.
You might need a loan for £1,000, which you can repay in a few monthly instalments.
So, you would look for a lender that will provide for your exact need at the time.
There is a chance that some lenders do not provide a loan for an amount of less than £1,500, so that will not serve you.
There is also a chance that a lender could give a thousand grand loans, but he mandates a repayment within a month, so you cannot opt for him.
Identify your needs and align them with the lender.
Are Repayments Flexible?
The second way of choosing your right loan partner is to check his flexibility and that too for the repayments.
Is the lender asking for your opinions and comfort levels?
Is he willing to amend the repayments for you?
Will he extend the tenure for your loan?
These are simple questions, if you are comfortable in repaying a £10,000 in 15 months, then you should do that, and a lender who is alright with this fact will be the right choice.
How Quick is The Lender?
Sometimes a person takes a loan because he needs it as soon as possible. Therefore, the readiness of the lender in approving the loan and transferring the amount to the borrower comes high up on the list of reasons in choosing a lender.
Some lenders are so competent in their job that they can approve a loan in minutes and transfer the amount in your bank in the next couple of minutes.
You do not even need to go to them, a simple online application or even a text can make you the recipient of a loan in mere minutes.
If you are looking for a lender like this, then Extramile Finance is your answer.
What About Prejudice?
There are a significant proportion of borrowers who fall into the category of low creditworthiness. These borrowers are treated equally by all the loan givers.
I feel that a person’s past should not inhibit him in his presence.
That is why the lender who does not discriminate against
a borrower with bad credit in his history;
a borrower who does not have a fulltime job;
a borrower who has no credit history at all; is the epitome of the lender for me.
A person’s present and his income levels should be the deciding factors for this creditworthiness, and indeed not his past.
All in all, I feel like private lenders are much-much better than the public ones, basically banks, since all four of the features mentioned above are found in them.
What do you think?