In this present world, it is common to see a lot of money lenders that are licensed or that fall under the registry of money providers.
In this registry, they require all money lenders of abiding by the rules and acts. Actually, the interest rates and fees charged are among the things that are determined by the registry.
For you to get a better understanding of the licensed money lender, it usually has the same job just like a bank that grants personal loans to people. They are those who have the most genuine financial needs. In the event that there is late payment, the lender must not harass the borrower. The best thing to do is to send the best reminder notice. This is one of the legal methods that is issued by banks and is almost the same with that of the money lender.
Other than the collection of debts and money, banks and licensed money lenders are working in a different way. They are different in terms of the forgiveness of the credit evaluation, the speed, and the high interest rates.
Here are among the differences of licensed money lender vs. bank:
- The money lenders are focused on smaller type of loans
Licensed money lenders are more focused on a smaller type of loans. If you are earning thirty-thousand dollar worth of income, lenders will be giving a loan of ten-thousand dollars. The legal restriction is more on offering four times of the monthly earning of a person.
If you are interested in having money in fixing a car or paying a rent, you can apply for payday loans from licensed money lenders is a must. However, renovation costs and housing loans are not the ultimate solution to consider.
Related Read: Benefits Of Getting A Payday Loan
If ever you already have all those proper documents, you’ll get the loan in just thirty minutes. The process depends on the time that you will obtain the cash. If the creditor has conducted a good background check, the borrower gets approved in no time at all.
As compared to banks, a licensed money lender offers a viable and fast solution. It also helps you in getting the money right away.
- Higher Interest Rates
The only downside of a licensed money lender is that the charges are high as compared to those offered by banks. With these higher interest rates, it is a lot better to obtain the money from a credit card. Thus, it is best to get approved for your loan at the bank than walking into the lender’s institution.
- Faster and Easier Approval
It will be difficult for you to apply for a loan if you have your missed payments. The bank will have its instant denial, especially if you have a poor credit standing. Remember that money lenders are not focusing more on credit. They are even more forgiving. Other borrowers are also doing a background check.
Related Read: Licensed Money Lender Is Your Safe Bet
With your credit standing, you will be denied with a loan from the licensed money lender. But then, a licensed money lender is still a perfect option to consider.