Filipinos are now being 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 knowledgable enough about it first.
Who are these Private Lenders?
Dictionary Cambridge defined Private Lenders as an individual, company, or an organization who lend money to people who are usually having a hard time 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 as they offer fast access to funds with a less complicated application process. However, is it really a wise choice to borrow from them? Here are its pros and cons.
1. Fewer Requirements and Conditions
Private money lenders do not ask for tons of financial documents compared to banks. If you have applied for a loan in a bank before, then you might be able to remember how strict they are when it comes to demanding financial documents and other necessary requirements. Plus, although you have successfully completed your requirements, it will not be enough assurance for you that your loan will be approved. Compared to private lenders who commonly only ask for two valid IDs, proof of income, certificate of employment, payslips, and proof of billing only. Once they are aware that you have the capacity to repay the money you are borrowing, you are good to go.
2. No Credit History Check
Compared to banks, private lenders do not make a big deal out of credit score and credit history. If banks use credit score and history to make a decision, private lenders only evaluate loan borrowers with their credibility to repay according to the documents they have submitted.
3. Quick Approval
Banks will make you wait for several weeks before providing you an update if your loan is approved or not. However, applying for a personal loan on a private individual or online lenders will only take over 24 hours of evaluation. Although the whole process might take at least a week, it’s still a lot faster than applying for a loan in a bank. If you really need urgent money, they are a good option to consider.
Vidalia Lending specializes in providing fast and secure loan application for your money troubles. From Personal Loan up to Business Loan, we have an effective 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.
1. High-interest Rates
Aside from providing faster and easier loan application, you have to realize that private lenders are lending 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) up to eighteen (18) months. If ever that you are in a very tight financial situation, you better think thoroughly first.
3. Chances of Getting Scammed
Last 2018, there are over 2,500 registered private lending companies in 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 that you have to check the lender’s credibility more than anything else before you give your personal information or start your transaction with them.
It is an inevitable fact that there are just times when we need financial support. This is when we can turn to banks and lending companies for help. However, make it a point to always think twice and weigh the situation first before you make a decision.
Vidalia Lending has helped thousands of customers with their financial problems since 2008. If you are looking for a loan to pay for your sudden financial emergency, Vidalia Lending is all you need. Go to our Loan page and expect a quick, easy and secure online application. Wait for our call for credit evaluation and within 2-3 days, your borrowed money is all yours.