Tips To Help You Choose The Best Private Loans Lenders.
Private loan lenders have been around since time immemorial. Much before there were organised banks and lending was institutionalised, private loan lenders used to be the only option.
Post recession, the world of private loans UK lenders has grown by leaps and bounds. As banks have tightened their coffers and have made eligibility criteria more stringent, private loan lenders have come to the fore.
It is a good thing and a bad thing. It is good because people have a choice. Many people, especially those with bad credit, now have an option and they can get a loan.
It is a bad thing because not all private loans UK lenders have very generous intentions. Some are in the business of making money and they make it at the cost of borrowers’ interests.
Here are some tips to help you choose the best private loans UK lenders
Remember that private loan lenders are not as well regulated as banks. Traditional financial institutions, banks, publicly listed companies that offer loans are compelled to adhere to certain standards. Their rates of interest and all their modus operandi are under stringent check.
Even then there are some odd ones that manage to flout norms or the best practices and give borrowers a raw deal. Since private loan lenders are not under such stringent ambit, whether it is the rate of interest or the qualifying criteria, they can have very erratic policies.
They can charge inhumane rates of interest and their terms of repayment or certain policies can be very unforgiving for borrowers, especially for those who fail to repay, default on just one payment or have very poor financial profiles.
Never judge a book by its cover. Likewise, never judge private loan lenders by what they advertise. The claims can be very different from the reality and more often than not the claims are just hyped up promises.
You should not fall for a certain claim of very low rate of interest or very favourable terms of repayment unless you actually see what the facts are.
Compare private loan lenders, check their rates and don’t just go for the apparently cheapest rate. Check the processing fees, application fees and any other legal fees or late payment charges that you would be paying.
It is quite possible that some lenders will have clauses that can rip you off should you fail to adhere to their terms of repayment. You must guard yourself against such policies and thus avoid dealing with such private loan lenders.
Always trust genuine feedback from borrowers who have actually taken loans from the private loan lenders in question. Don’t fall for marketing testimonials. Refer to forums, review sites and authentic consumer opinion before trying to fathom the credibility of private loan lenders.
Finally, always be cautious of what you are signing, with whom and never let your guard down. A harmless processing fee or late penalty may cost you several days’ wage.
Lenders you can trust
All of the loan companies we use and advertise are all fully regulated and certified and you can apply with confidence on this website for products.
See also Private Money Lenders for Personal Loans.