A Personal Loan is one of the most common forms of finance available. For this reason, just about every single lender on the planet has some form of Personal Loan as an integral part of their product suite.
Personal Loans are popular among borrowers because they can be used for just about any purpose. Customers are not locked into using the money to purchase a car or a home. It’s like having cash flow that you can spend on almost anything.
So, what is the best Personal Loan service provider? Should you go to a bank for a loan, or approach a private lender instead?
In this post, we’ll take a look at some of the advantages private lenders have over the banks and why you should consider a Personal Loan finance company in the private sector.
Private Lenders Offer Smaller Loan Amounts
If you were to apply for a Personal Loan online with either a private lender or one of the big banks, you’ll discover that the banks generally have a minimum loan amount of $5K. That’s fine if you’re looking to borrow that much or more, but what if you only need $1,000?
This is where a private lender has an advantage over the banking sector. Most private lenders allow you to borrow anywhere from as little as $500 if that’s all you need. Most private lenders will have a ceiling around the $15K mark, so they are the go-to finance company for those smaller personal loans.
Why pay interest on an inflated loan amount that you don’t need? Private lenders are the best option in this instance.
Fast Cash and Fast Approvals
Banks will always have their place in Australian society, but they do have their restrictions. One of the biggest constraints when it comes to getting finance from a bank is the time it takes to do an application, gather all the documentation, wait for someone to process it and then hopefully get it approved. A Personal Loan application can take weeks before you get a yes or a no.
What happens if you can’t wait that long? What if you really need the money fast, like today?
A fast cash, Personal Loan from a private lender is the answer once again.
To give themselves an edge over the banking sector, private lenders focus on providing lightning-fast service when it comes to the processing and approval process on their loans. Quite often you’ll have the money on the same day your loan is approved, which makes a private lender Personal Loan the ultimate solution for when you need money quickly, like in the case of an emergency.
There Is Not As Much Paperwork
Even with everything digital and on file in the modern world, for some reason, the banks still seem to be in love with mountains of paperwork and documentation. While their online application forms for Personal Loans might be straightforward enough, you’ll be asked for more and more documents to support your application before they can process it.
While private lenders require some supporting documentation too, like verifying your identity, paperwork for a private lender loan is minimal compared to the banks. This also helps to speed up the approval process so you get your money quicker.
The Online Application Is Also Fast
You can see a theme developing with private lenders here. Everything is about speed and efficiency with a minimum of fuss.
To apply for a Personal Loan, it only takes minutes to complete an online application form. If you apply early in the day, you could even have your application processed and approved that same day.
You won’t spend hours putting your application together. It’s just not that involved or complicated, which is another major selling point when it comes to private lenders.
Short-Term Loans For Fast Repayment
You’re only borrowing a small amount, so you won’t want to be paying off your Personal Loan for years and paying stacks of interest. The private lender loans have terms of between 3 months to 24 months usually, so a decent time frame to repay without feeling like you’re in debt forever.
Personal Loans from private lenders can definitely be the best option for people who require smaller amounts of cash, or need the cash fast and hassle-free.