What To Expect From A Direct Lender And From Their Loans? 

Online lending has been a hype in recent times. Thus, whenever anyone has to borrow money, they tend to get confused between direct and mainstream lenders. Some of them want to play safe and rely on the traditional lending approach.

It is perfectly alright as they have freedom of choice. However, there is no scope for flexibility in typical lending approaches. There are straightforward conditions to fulfil in case you want to get a breakthrough in loan approval.

With a mainstream loan provider, you cannot expect to get assistance if issues like poor credit scores exist. On the other hand, you can take out bad credit loans from a direct lender. This might make you think if these online lenders are genuine or not.

This is because credit history is one of the crucial elements for lenders to evaluate. If it is not favourable, loan approval is highly undesirable. There is an exception to this rule and it has been made possible by direct lenders.

Now, it is not that you will surely get accepted by online lenders even after getting rejected by traditional lenders. You need to evaluate how getting online loan assistance can be fruitful in your case.

This blog is dedicated to helping you understand the aspects that can benefit you if you apply for loans with a direct lender.

Features you can anticipate to get with loans from a direct lender

Over the years, getting loans from a direct lender has become quite common. Despite this, people are unaware of when they should opt for this option. Most importantly, they get carried away and apply for loans without reviewing all the features carefully.

Just because they are lenient and allow you to get loans in various combinations of financial conditions. Maybe, the available option seems suitable but it requires you to fulfil a typical condition that you cannot. Now, if you apply for these loans by remaining indifferent to this aspect, you will have to face rejection.

Get an opportunity to study the features of loans made available by a direct lender.

• Customised loan offers

You do not have to accept any random loan rate to compensate for the flexibility these loans offer. This is where a direct lending approach is different from the conventional one. The loan proposal will be personalised keeping your financial aspiration and capability in mind.

If it does not suit you, they have a provision that allows you to deny accepting the offer. You have the opportunity to adjust the loan amount and repayment term to see how much you have to pay monthly, weekly or fortnightly.

Once you feed in your preferences, the loan offer will get custom-ready. Thus, you can get a loan offer according to what you want.

• Fewer formalities

If the various rituals concerning lending had not been shortened or eliminated, there would be no difference between direct and mainstream lenders. The traditional hard checking of credit scores which is responsible for leaving an imprint on your credit history will be unfollowed here.

For this reason, a poor credit borrower should not feel hesitant to apply with a direct lender. Here, the credit scores are not only used for scanning the loan application. In fact, the present-day financial picture of them will be considered.

This can tell the loan provider about your ability to repay loans. However, credit scores cannot provide assurance about the repayment likelihood. With the elimination of these formalities, the lender is able to process the loan application in a fuss-free way.

• No hassle related to documentation

Loan applicants oftentimes find it an interesting way to apply for loans. For them, the biggest relief is that they do not have to visit the bank branch. Besides, there will be no complexity related to the bank’s working schedule.

With the online approach, the borrower can apply from almost anywhere. They should be able to present the necessary information in the correct format. Again, the loan provider does not demand the completion of a long application form.

Not only this but also they do not need borrowers to complete a lot of paperwork. The online application is quite brief and needs less information. For this reason, the loan applicant needs to be careful while filling out the form.

• Effortless hand over of money

One of the drawbacks of mainstream lending is the loan disbursal process. The loan applicant might have to pay a visit to the bank to collect the approved sum of money. With direct lenders, they can receive money online in their checking account.

For this reason, it has been mentioned that you must share valid information in the application. Now, if you provide incorrect bank account details, you will not be able to receive funds just when you need them. Besides, you do not have to wait longer to receive money after successful approval.

• Privacy of data

You might wonder if your sensitive details i.e.name, bank account information etc., are safe with these lenders or not. Rest assured to face no threats from hackers who intend to misuse your data. No information will be shared without your permission.

Besides, the details that you will put in will be encrypted. On top of this, various safety features will remain activated on the lender’s website as well.

The bottom line

Another interesting characteristic of direct lending is that you can get loan assistance even without a bank account. When this revelation makes everyone raise eyebrows, you can get doorstep loans for bad credit.

The existence of a bank account for a borrower is inevitable. Now, this type of loan option has proved that you can think beyond what happens traditionally in the lending industry. These lenders have tried to target borrowers who need loan support but do not have an access to a bank account.

Opening an account amidst a crisis is a tough job. These loans can be a lifesaving option for them when other choices are inaccessible. At this point, you might be curious about the way approved funds will get transferred.

In the absence of a checking account, the lender will not make you visit the bank branch to collect hard cash. Instead, they will send a loan agent to deliver the approved amount to your doorstep.

FAQs

• How direct lenders are different from brokers?

Online loan providers are an alternative to traditional lenders. However, they are not a mediator and you can contact them to get direct access to loans. On the flip side, a loan broker cannot provide you with loans. They can help you network with different lenders to get a loan offer ultimately.

• Do they charge additional fees for pre-payment of loans?

No, you do not have to stress on paying extra money in order to pay back loans in advance. These lenders give you the liberty to pre-pay whenever you feel comfortable. Now, if your financial situation has improved, you can consider repaying the remaining loan debt ahead of time. This will relieve you from the burden of additional monthly payments of interest.

• Is collateral a mandatory condition with direct lenders?

The direct lending approach revolves around offering short-term loan assistance. In most cases, the loan repayment assurance in the form of assets is not required. This is because the lender can easily figure out the odds of getting loan payments on time from the existing financial situation.