- January 13, 2021
- Mark Elwes
WHAT IS THE INPUT OF PRIVATE MONEY LENDERS IN THE FRESH LOCKDOWN?
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As the world knows, the UK has been facing a new lockdown due to the increasing numbers of new Covid-19 strain victims. Indeed, the situation is tense and worrying signs for everyone.
The locals there are looking for ways to survive in their social, economic, and personal lives. When it comes to financial life, the situation looks more worried.
The whole financial balance has been disturbed with the re-imposition of the lockdown. The locals are back on work from home, but this is not easy at all.
Before this time, they used to borrow funds to fulfill their desires, but now is the condition where they want funding assistance to manage their regular or irregular expenses.
In such a severe scenario, the role of private money lenders in the UK becomes more crucial.
Do you want to know how they can assist? Continue to read below.
The Text Loan Service Adds More to their Efficiency
There has been the UK trend where the people prefer doorstep cash loan service of the direct lenders. It eases their efforts in the timely assistance, and of course, they have the comfort of getting funds at their home.
Now the lockdown has been imposed so doorstep service might not work. The private lenders have analyzed the situation, and they are more focused on text loan services.
The borrowers can send a text message from their mobile phones as a loan query. They can do this anytime throughout the day. The lender’s representatives quickly respond to their application and allow instant loan decisions.
However, this mobile text loan facility is only for small expenses or unforeseen costs.
From Good Credit to Bad Credit, Assistance is for Everyone
Perhaps, the most significant element in the private money lenders’ financial assistance is that they have opened their lending doors for every credit score.
Approval is always there for the people with excellent and good credit ratings. Even the fair category of the credit scores attracts approval from the lenders.
The problem arrives mostly for people with bad credit and very bad credit scores. The traditional lending institutions do not entertain them, but the private lenders welcome them.
Despite keeping the interest rates higher, borrowers prefer their bad credit loan products. The lenders keep the approval criteria, not their past credit history but their current income status.
More Relaxation on the Monthly Instalments
The direct lenders in the UK are preferable among the locals for their flexible lending. It means they offer loans on affordability that are determined by the borrowers’ repayment capacity.
During this challenging time in the early part of 2021, most private lenders have become more flexible and become more useful for the maximum borrowers.
Their flexible lending norms include repayments according to the borrowers’ comfort. They can first analyze the deal by using the loan calculator and then decide the repayment period.
Almost the same thing applies to interest rates. Unlike traditional lenders, these money lenders talk to the borrowers to know their capability and then decide the loan interest rates finally. If everyone goes well, then the chances of installment loans for bad credit from direct lenders only become apparent.
More Relevance of Unsecured Funding
The fresh lockdown has further increased the significance of unsecured loans. In addition, when it comes to these loans, the private money lenders score higher than the conventional lending institutions.
The unsecured personal loans from direct lenders are more capable of assisting the borrowers. They are locked inside their home and thus, providing the papers for the loan assets won’t be possible for them.
These personal loans do not need such obligations, and borrowers can borrow funds without pledging anything. They are also at less risk of losing the assets if they default on loans.
You should know that these will be the higher interest rate loans as compared to the secured loans. But, the process takes lesser time and fewer obligations to follow.
Unemployment Is No More a Curse
Last year’s lockdown and the fresh one has undoubtedly increased the ratio of unemployment in the UK. They look for the alternative to survive their finances despite no full-time job.
The private money lenders in Ireland have shown their presence for them too. They have come with flexible unemployed loans where the feasible borrowing is there.
If they earn freelance income or any other part-time earning, they can easily fetch the loan approval. However, the interest rates may be higher, but they can get funds despite the bad credit or no assets.
In the Nutshell
People in the UK may have been facing lockdowns so that their health remains unaffected by the new strain.
Private money lenders are ready with their timely assistance and easier online lending norms for better financial health.
Mark Elwes is the Editor-in-Chief at Extramilefinance. He is a notable member of the content strategy team since his joining in 2017. Driven by his fondness for the finance industry, he has spent years gathering as much knowledge as possible about various financial products that include loans also. Previously, Mark worked as a senior journalist writer with experience in writing blogs and articles.