Is George Banco Safe? – Traditional banks and financial institutions do not delve into non traditional unsecured loans. Private lenders seldom foray into financial products that banks offer. There is a distinct demarcation.
Most private lenders develop their market share in unsecured loans, mostly payday and short term personal loans. Many develop their products encompassing title loans.
But most private lenders tend to gradually develop their loans and eventually offer guarantor loans. George Banco has had enough exposure in the UK finance market, but it ventured into personal lending directly with guarantor loans.
Well, Is George Banco Safe?
The question, is George Banco safe, is a tad unfounded. It is a private lender, much like dozens of other lenders operating in the space and it has a lineup of loans that can help people in need. Many people have been benefited with the proposition of George Banco that allows one to get a guarantor loan without requiring a guarantor who is also a homeowner.
In other words, George Banco offers non homeowner guarantor loans. Many providers of guarantor loans have lost their market share to George Banco but there are many who criticise the high rates of interest that they charge.
If you were to look at the entire proposition in an objective manner, then it is obvious for George Banco to charge a higher rate of interest. That does mean they would lose out on a substantial market share but it also allows them to take greater risks which they are already indulging in by offering non homeowner guarantor loans.
Hence, is George Banco safe is ideally a question for the lender since they are the ones risking more. Being compelled to pay almost twice the loan amount while repaying a loan over a period of three years or so is certainly not a pleasant reality. Many borrowers who opt for guarantor loans are already hard pressed for cash.
The liability of paying hefty rates of interest certainly hits anyone but not everyone has an approved guarantor who happens to own a home. Many borrowers are renters or tenants themselves and they have a limited social network, actual connections that would be willing to become a guarantor.
The fact that a borrower cannot use anyone as a guarantor who has some kind of financial dependence is another crucial element that makes George Banco’s propositions relevant and worthwhile. Should you be willing to pay slightly more interest, then not only should you avoid asking how safe is George Banco, but seriously consider a loan from them!