The Difference Between Legal Money Lenders And Banks

The Difference Between Legal Money Lenders And Banks

The-Difference-Between-Legal-Money-Lenders-And-Banks

In most cases, banks may fail to help you meet everyone’s financial needs, leading many individuals to turn to legal money lender agencies instead.

Licensed Moneylenders

There are so many restrictions and requirements that customers experience with banks. However, a registered money lender will offer you quick loans to help you meet your financial need more easily and quickly.

Money lenders have become the most reliable and viable alternative to banks because their conditions are more relaxed. It is important to borrow your money from a registered lender because the governing authorities will regulate the fees they charge.

The only similarity banks and money lenders have in common is that they can offer loans and that both charge a fee for the loan provided.

Money lenders and banks operate on entirely different grounds when it comes to speed, higher interest rates, credit assessment and small loans.

Small loans

Various loan agencies will have different lending limits. Some will not exceed certain amounts despite your monthly income. This makes a licensed money lender ideal for smaller loans for emergencies. They will help you take care of things like fixing your car, paying clinic bills, settling your plane ticket bill and much more.

It is advisable that you do your research about different lenders and know the limits they can offer before you decide how much you need to borrow.

Speed

Most money lenders are fast when it comes to the processing of loans. In fact, some agencies will approve your loans in about 30 minutes, as long as all the necessary documents are availed. The reason for this is that most lenders are small scale, thus promoting flexibility. Although their loans are not that huge, they are certainly faster than most banks. For quick loans, money lenders are the number one option as they will likely approve your application even if you do not have a credit card.

Interest Rates

Quite some lenders will not communicate the interest rates on email or over phone calls as the law requires that the lender and borrower meet in a face-to-face conversation to discuss such issues. However, you can only be sure the contract is legal when you consult your lawyer. You should do your research before making a decision as you might end up falling into larger financial difficulties if you end up with a loan that has a high-interest rate.

 

Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone