Need a loan? which is better- bank or loan lenders?
So, you are planning to borrow a personal loan. Are you confused about the lender? We will help you.
Loans from Bank and loans from non-bank lenders have got their own pros and cons. Making a list of advantages and disadvantages of both the lenders, before borrowing a loan, will help you to make the best use of the loan, that you are borrowing.
Below, we will be telling about how loans from these two organizations work.
1. Loans through Banks-
Banks are established institutions and can offer loans for various purposes. Secured loans will be offered at low-interest rates. But, for unsecured loans, banks have stringent rules and regulations, and the interest rates are also high. Banks are easy to access. Mostly there will be additional charges on your loan apart from the interests. When you borrow a loan from the bank, in most cases, the bank will ask for a justification about the purpose of your loan.
Loans borrowed from banks are usually tax-deductible.
With a bad credit score, you will never be granted, an unsecured loan. Banks do not offer personalized service and have a limited variety of loan packages.
2. Loans through non-bank lenders-
Non-bank lenders are those, who run private loan lending organizations that lends borrowers with a broad range of loans like secured loans, unsecured loans, payday loans, etc. Rather than, contacting the loan lenders directly, you can contact them through reliable online sites. Ficc.fi is one such site, on which you can find lenders offering different types of loans with agreeable interest rates.
Lending criteria is not very strict as in banks. These lending agencies will have a greater range of loan packages; that can suit your financial circumstances. These organizations are a lot more flexible when it comes to repayment terms.
Even with a bad credit score, you will be lent an unsecured loan with few additional conditions.
The high-interest rate is the only disadvantage of the non-bank lending organization.
Banks are well-established when compared to other lending organizations. But, these lending organizations have got more advantages when compared to banks. With a good credit score, the non-bank lending organization is an excellent option for a loan.