Private Lenders Personal Loans

Private lenders are individuals or privately-owned financial houses who loan out money. A personal loan from a private lender can give the borrower the cash they need without a long waiting period. Private lenders also offer flexible repayment terms. They also require fewer documents than mortgage brokers, banks or credit unions for processing loan applications. If you are finding it hard to get a personal loan from a bank for any reason, then a private lender can come in handy. Private lenders are the best option if you have a bad credit score. Private lenders recoup their expenses and make profits from these loans through the interest rates they charge.

A private lender personal loan is a good option for people wanting fast cash without the hassle of tedious paperwork. You can get loan amounts ranging anywhere from $500-$250,000, depending on your credit rating. Most personal loans from a private lender fall in the $1,000 to $5,000 range. This is generally repayable on a monthly basis within a maximum of 3-5 years.

How to find a good private lender for personal loans

You can use a directory service, ask around for referrals or use a search engine on the internet such as Google to find a private lender. Some financial institutions may also be willing to assist you in finding private lenders to finance your personal loans.

Once you have shortlisted the private lenders, compare fees, penalties and repayment terms in addition to the annual percentage rate (APR). You should select a private lender who compares favorably on most items.

You should do a thorough research on the private lender you have selected and verify their credibility.

Things to know when applying for a personal loan from a private lender

Before going in for a loan, find out your credit score. Private lenders usually do a credit check before approving a personal loan. If your credit score is good, you will have the advantage of getting a lower interest rate and flexible terms and conditions. If you have a poor credit rating, private lenders charge higher interest rates and have stricter terms and conditions. Also, only small loan amounts will be sanctioned.

Always make sure that the terms of the loan taken are satisfactory and that you will be able to repay the loan without much problems. You should also request for the terms to be provided in a written form so as to avoid any issues in the future.

You need to produce proof of having a steady income of not than less than $1000. This is required to get personal loans from most private lenders. You will also have to produce copies of your bank statements, financial records and tax returns when you submit the application for a private lender personal loan.

Turning to private lenders for personal loans is the best course of action if you are short of cash and want to get a quick loan. They are far more flexible and prompt in sanctioning loans than institutional lenders.

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