Tough times do come, and the need to borrow money does arise in the life of almost all individuals. But how you cope up with the need, how you plan to arrange the cash, and how you apply for the loan matters highly, so that you do not take any wrong decision in haste.
There are plenty of money lending organizations out there, who would lure you with the assurance of fast processing. Some would tell you it’s a no verification process, and some would advertise that they don’t ask for any documents. But you must remember one principle in this money lending thing, and that is, the more you bag facilities and cut down on time, verification, documentation, processing, etc., the more you pay the other way around in the form of strict rules, pre-payment penalties, high-interest rates, etc. Hence to understand the market beforehand, so that you can make smart decisions while in a crunch, it’s wise to stay prepared and gather understanding.
It’s important to remember that when you take an installment loan online, you are essentially borrowing money from someone else, and in return, you will have to pay that person back with interest. The interest is what the lender charges you for using their money, and it’s usually expressed as a percentage of the total loan amount.
Get all the answers ready
You will be asked for things. You will be verified by your address, identity, salary, earnings, properties, bank account, past financial records, legal records, and everything in the process of loan approval and processing. And hence, you must stay prepared with all the answers. If you have no answer to an important question, then you must step back, gather enough resources to come back with an answer, and then apply for a loan. Lenders will not give it easy on you while lending. And you will have to stay prepared with the following things.
Do you have the right documents?
Lenders do not entertain loan seekers who have inadequate documentation. If you cannot provide the proof of your identity, which should be a government-approved document that proves your citizenship, then you are nowhere. Also, if you don’t have a proof of address, then again you wouldn’t find a lender easily. No bank or financial agency will trust a person who has no fixed place to stay and no address proof. Hence, you must have both of these.
Also, you must have a bank account to prove your credibility. This will be the account where you may receive the cash. Also, the bank account proves that you have a financial transaction history that can be searched through to find out more about you. Normally, a healthily maintained account always helps you stay ahead.
A working telephone number is the next essential. If you don’t have one, then you surely will have to get one. You must prove with a landline or postpaid number bill that you pay for a telephone line from the such and such location.
What do you own for security?
This is the next crucial question you will be facing. You must own something to place as security. Your house, or car, or a two-wheeler, or land, or gold, etc., can all be held as security when you can prove your ownership. That is why you will have to prove your assets to get a secured loan.
Non-secured loans are there, but they come with higher interest rates and make no sense for a loan seeker who has a healthy or sound credit rating. In case you have a bad credit history, you may find interest in the no security loans. Else you would need to find a security, or else get a guarantor.
A guarantor is a person, who would guarantee your credibility to the money lender so that the loan is approved to you. The guarantor will pay back for you, on your behalf, in case you become unable to pay, or are not available to pay for any reason. The role of a guarantor is crucial, and not many would like to play the role unless you are lucky. Hence having some form of asset to play the security is essential in getting a loan.
Do you have a bad credit history?
If you have a good credit history or rating, then you can get a loan from anywhere. In case you don’t have you will have problems, and will have to go for a bad credit loan, which is approved at higher rates of interest.
What is your earning proof?
You must show proof of earning to get a loan. If you get a salary, then you will have to show the salary slips or the bank account statement showing the payment of salaries from your employer. In case you are in a business, you will have to show your business documents along with trade license or partnership deeds, etc., and also the earnings from business with tax documents. This way your earnings are proved. In case you have variable earnings, and you are a freelancer or cannot prove your employment, you still stand a chance to get a loan, but for that, a lump sum amount will be fixed as your earning and you will be charged a little high interest for the loan. Also, no verification for the earnings will be done then. Money lending companies like https://www.libertylending.com/ are a big help in such services, and you may seek the help of such services to get loans on easy terms.
There are loan processing, lending, and funding agencies, which can process a loan without much fuss. Going through them helps you seek a loan without much hassle. Often the lengthy processing time gets reduced, elaborate documentation processes get shortened, and verification is not that strict when you go through such services. It’s done so that things are processed faster and hassle-free for the relief of loan seekers, who often are in some pressure or emergency situation.
Bagging a business loan, car loan, two-wheeler loan, student loan, personal loan, etc., is not hectic and messy a job as many people say it is. It’s all about choosing the right services, staying informed, and using the right resources the right way, so that you stay sorted and get your cash fast.