If you want some working capital for your business or you need some cash for your medical treatment then you can apply for the loans. Apart from that, different types of loans can serve you for separate purposes like, home loans, business loans, credit loans, overdraft, personal loans, car loans and equipment loans. But if you apply for these loans from your bank then you must wait for a longer time because banks will verify your documents and then they will disburse the loan after a long time. If you want to save your time then you can apply for the loans from non-bank lenders or private financial institutes. Consumers can benefit by borrowing from non bank lenders because they can also provide the loans with poor credit score. Choosing the right lender can be a difficult task. Thus, you must consider various aspects before making your choice. Make sure the fees and rates offered by the lender are transparent and offer a good service.
What are non- banking lenders?
Non bank lenders are financial institutions other than banks, credit union or building society which offer loan products to consumers. They are not regulated by any banking agency and do not have a banking license. Non- bank lenders include investment banks, mortgage brokers and more. But these lenders are approved by the government and they have their license to generate the financial helps and loans to the consumers.
Various platforms of non-bank lenders
1) Non- Banking Finance Companies– These have flexibility and risk bearing capability to fund a proposal which do not match major parameters like turnover, credit score, cash profit and business. If you want to develop some projects and you need some financial help then you can take help from these non-banking financial companies, and if they find your development project beneficial then they will approve your loans accordingly.
2) Peer to peer lending platform-In this platform the lender and borrowers connect directly. Borrowing is possible at lower interest rates while the lenders earn high returns. But in this case, you need to check the interest rates and other charges of the lenders before disbursement of the loans.
3) Fintech Platform– It consists of banks, financial institutions and peer-to-peer lending platform. It is online digital platform where collection, verification and analysis of documents are done online. These online platforms can provide you the fastest loans at the lowest rate of interest, and you can easily fill up the forms and submit your documents online. Even some banks are now using this technology to minimize the approval time of their loans, and you can also apply for their loans through their official websites.
Advantages of choosing non-bank lenders
- They are more flexible to the specific needs of the borrower. There may be features which a bank may not offer but these non bank lenders offer like flexible repayments, extra repayments and penalties, interest only repayments etc.
- They offer competitive interest rates. This is because they are not weighed down under the cost of having big corporate structure and branch networks. Thus, these savings can be passed on to the customers in form of low interest rates.
- Different borrowers need a specialized home loan or need to have their loans assessed on its merit rather than depending on automated assessment through score cards. A home loan potentially declined by a major bank can be borrowed from non bank lenders. If you have poor credit score then also you can apply for the loans to these private lenders.
Apart from that, these non bank lenders can provide you faster loan approval and they have 24×7 customer services along with online account facility. So, you can easily solve your problems through their customer cell and you can also monitor your loan status on your personal loan account dashboard.