When it comes to personal loans, there are a few options available to you: you can borrow money from a friend or family member, take out a loan from your bank, or get a loan from a licensed moneylender.
Taking a Personal Loan From a Licensed Moneylender
Taking a personal loan from a licensed moneylender instead of a bank has a few reasons why it might be a better option.
Well, licensed moneylenders are more forgiving regarding credit scores and usually have lower interest rates and fees.
Furthermore, they’re more likely to approve loans for people with bad credit or no credit or offer fast, easy application processes.
Licensed Moneylender Personal Loan Benefits
Here are some pros of taking a personal loan from a licensed moneylender: Well, licensed moneylenders are more reputable as they usually have lower interest rates, have more flexible repayment terms, offer a wider range of loan products, and have more stringent qualifications criteria than unlicensed moneylenders.
Licensed Moneylender Personal Loan Drawbacks
Before deciding, weigh the pros and cons. Consider these: Licensed moneylenders cost more than banks. They have high interest rates and many fees. They also market aggressively. They may call, email, text, and show up at your door. Above all, late loan payments have serious consequences. Licensed moneylenders can sue, seize, and imprison you. Read the fine print before signing.
Personal Loan Tips
Personal loans require some considerations. These tips will help you choose the right option.
Do your research
- Before committing, research the many licensed moneylenders. Compare rates, terms, and borrower reviews.
Compare loan offers
- Don’t accept the first lender’s offer—compare rates and terms. This will help you find the right deal.
Consider your options
- Choose the right personal loan from the many options. If you need a lot of money, consider a secured loan.
Check your credit score
- Know your credit score before applying for a loan because it will affect your interest rate. Free credit reports are available at annualcreditreport.com.
Licensed moneylenders may offer lower interest rates than banks. Moneylenders are experts in lending and risk assessment. However, licensed moneylenders may charge higher interest rates than banks, so weigh the pros and cons before choosing. Overall, before getting a personal loan, do your research and pick the best option.