Filipinos are now modern even in borrowing money. Many are now looking for private lenders to get a personal loan. However, before trying it for yourself, you must be knowledgeable enough about it first.
Who are these Private Lenders?
Dictionary Cambridge defines Private Lenders as individuals, companies, or organizations that lend money to people who usually need help to qualify for bank loans. Filipino private lenders provide short-term personal loans commonly for car buyers, small business owners, and OFWs. They often attract borrowers easily by offering fast access to funds with a less complicated application process. However, is it a wise choice to borrow from them? Here are its pros and cons.
Pros
1. Fewer Requirements and Conditions
Private money lenders only ask for a few financial documents compared to banks. If you have applied for a bank loan before, you can remember how strict they are when demanding financial documents and other requirements. Plus, although you have completed your requirements, you will need more assurance that your loan will be approved. This contrasts with private lenders, who commonly only ask for two valid IDs, proof of income, certificate of employment, payslips, and proof of billing. You are good to go once they know you can repay the money you are borrowing.
2. No Credit History Check
Compared to banks, private lenders do not make a big deal out of credit scores and credit history. If banks use credit scores and history to decide, private lenders only evaluate loan borrowers with their credibility to repay according to their submitted documents.
3. Quick Approval
Banks will make you wait for several weeks before providing an update on whether your loan is approved. However, applying for a personal loan from a private individual or online lender will only take 24 hours of evaluation. Although the whole process might take at least a week, it’s still much faster than applying for a loan in a bank. They are an excellent option to consider if you need urgent money.
Vidalia Lending specializes in providing fast and secure loan applications for your money troubles. From Personal Loan to Business Loans, we have an adequate loan offer ready for you. There is no prepayment process, and you can set regular fixed payments. Loan application is done online, and you can get your borrowed cash as fast as 2-3 days.
Cons
1. High-interest Rates
Aside from providing faster and easier loan applications, you must realize that private lenders lend their money with high credit risk. The main reason why the loans they offer have higher interest rates.
2. Short Repayment Period
Filipino private lending companies usually offer private loans with repayment terms in a short period ranging from two(2) to eighteen (18) months. If you are in a very tight financial situation, you better think thoroughly first.
3. Chances of Getting Scammed
In 2018, over 2,500 registered private lending companies were in the SEC. This means that they are legally operating in the Philippines. However, as people find new and negative ways to use the internet, scammers are also on the rise. Remember to check the lender’s credibility more than anything else before you give your personal information or start your transaction with them.
It is inevitable that there are just times when we need financial support. This is when we can turn to banks and lending companies for help. However, can you always think twice and weigh the situation before deciding?
Vidalia Lending has helped thousands of customers with their financial problems since 2008. Vidalia Lending is all you need if you are looking for a loan to pay for your sudden financial emergency. Go to our Loan page and expect a quick, easy, secure online application. Wait for our call for credit evaluation, and within 2-3 days, your borrowed money is all yours.
