kdainvestment.blogg.se - Download private money lenders

Interest rates: Money lenders charge higher interest rates than lending institutions.

This though may seem a good aspect is actually not as you may be taking a loan beyond your repayment capability, and may get further entangled in a debt trap. However, money lenders do not conduct a background check and therefore tend to give the exact amount you need. Therefore, chances are the amount they sanction might be less than you require.

Loan amount: Lending institutions take into account your current and expected income and repayment capabilities before deciding on a loan amount.Let’s look at some of the key factors that differentiate loan taken from banks and the one taken from money lenders:

So, the question to be asked is whom should one approach -a private money lender or a bank?

Now while some may approach a bank or a non-banking financial institution (NBFC), many also contact money lenders. And, the most common form of loan taken at such junctures is personal loan. Borrowing money is the first option that comes to mind when we are faced with a medical emergency or fall short of funds for making down payment on our new house.