- Emma Anderson
- March 18, 2020
The scheme of funding and financing has come a long way, especially considering the implementation of FinTech, known to synthesize finance work using top edge state of the art technology.
People these days especially, the millennials in the UK are very naïve and spendthrift and managing their own financial things is very arduous and cumbersome for them.
We can find that most of the sections of the masses in the UK are under debt and they need a whole lot of money in terms of small-term personal loans and working capital.
Most of the FinTech lenders emphasize to cater to the marginalised section of people at large by giving them facility like 100% guaranteed loans and fund disbursal.
Normally, top banks in the world require many kinds of documents and unwanted formalities in for any kind of loan transaction to get through, like a guarantor, co-signing as well a broker.
And this invariably puts pressure on the common man who is already burdened by low credit score or existing debt levels or unemployment.
Below mentioned are some points citing the benefits of getting guaranteed loan approval from FinTech lenders:
1.The Easiest Way to Apply
The foremost aspect of availing the facility of digital lending companies is that their whole deal of lending criteria is based on everything in the digital and cyberspace realm for all transactions.
- This aspect invariably dissolves the requirements of a large amount of paperwork as well as the time and unwanted spending of loan takers’ energy and resources in a physical manner.
- All loan documents are set to get approved online, through the requirements of scanned copies which in turn makes it easier to check and clear all the documentation formalities.
- Once the document paperwork goes through, the disbursal of the loan amount gets very easy with even same day loan amount disbursal.
2. A Big Relief for People with No or Bad Credit History
The scheme of lending funds is very easy and simple even for those having past track records in debt accumulated. The modern-day lenders don’t mandate the requirement of a credit report and a high credit score.
Catering to the funding needs of people from all fractions of the society, digitised lending companies do not emphasise on a Co-Signing agreement. In addition, they also do not make mandatory a guarantor as a surety for repayment as well the requirement of a good credit score.
The finance professionals in FinTech lending companies understand the minds and financing capacity of marginalised people in society. Thus, they do not require any past credit record, and consider only the basic loan payment capacity in terms of job, etc and any future source of income.
3. No Need to Lose Pocket More with Brokerage Fee
The online lender conducts the whole process of loan sanction and disbursal with no scope for fraud and hidden charges.
This invariably leads to less pressure and saving of the broker’s fees, which is borne by the lending company.
The companies providing products like guaranteed loans for unemployed have their whole process made transparent.
The experts in the finance industry will also assist in negotiating the rate of interest.
4. Criteria for Loan Disbursal
Another simple aspect of availing loans from digital lending companies is that their criteria for granting loans are easy, simple and accommodative. It may fulfil the requirements of every common man in the UK.
The overall masses, feeling the financial crunch, can avail any good amount of funding assistance in the most transparent and trustful manner.
The person availing the loans has to fulfil some simple guaranteed loans criteria, mentioned below:
- A full-time job in any sector is necessary;
- The person availing the loan must be minimum of age 18 years and above; and
- UK citizenship is a compulsory mandate
Obligations are mere formalities or not applicable sometimes
Another major reason for availing of loans from FinTech Lenders is that it accommodates the funding necessities of those who are unable to avail of any kind of loan, considering their bad credit report and credit score and overall creditworthiness.
The traditional lenders like banks in the UK ask for various kinds of collaterals and employ credit checks. Most of the people who are in dire need for short term funds find it easier through online lenders as this would come a lot easier as compare to the conventional counterparts.
The very proposition is that FinTech companies even consider a part-time job to grant the approval. If the borrowers are able to repay the loan with that, then they might not be required a third party as a guarantor and any type of collateral.
In conclusion, availing loan from online lending companies is very simple, transparent as well as cost-effective considering the skyrocketing rates of interest and the requirement for collaterals.