FinTech or financial technology has developed from the use of advanced technology in providing various numbers of financial services to the borrowers. In the UK, the loan market has become very competitive as various lenders add into it every day. Still, many people left deprived from the aid of the funds due to low credit ratings and unavailable documents. It happens because the standard banking institutions work with the conventional code of conduct and do not approve the credit application, if any element is not being presented in the procedure. Many other financial institutions also follow this approach. Meanwhile, some Credit Lenders in the UK are using the financial technology and providing the maximum easiness to the borrowers.
How these lending institutions are helping the borrowers?
The private lending institutions, which have an online presence, can also be called as direct lenders. These are helping many people in the UK by allowing a wide range of the financial products and services of them like instant cash loans, loans for bad credit, loans for unemployed people, guaranteed loans and many unsecured loans to enable the borrower to tackle any of the financial challenge.
The unsecured loans are short-term loans under which a lender allowed the borrower to take a small loan against which it is not mandatory to deposit any collateral.
5 benefits of acquiring loans from the direct lenders:
- Subprime lending policies:
The online lenders are sanctioning the online applications of the borrowers under the subprime lending policies also. As above discussed, some direct lenders are providing loans for bad credit and no guarantor loans also, and these financial products are part of the subprime financial products. This is just a part; a borrower can get more benefits with such policy like no credit check, flexible repayment period and negotiable interest rates.
Generally, the direct lenders are providing these benefits to the people, who are not so good at paying on the time and as it includes flexible repayments, the borrowers can maintain their credit reports but the borrower must not cross the standard repayment period.
- High rate of approval:
The rate of approval of these loans is very high as the lender does not ask for the lengthy documentation and even avoids the credit check sometimes. People, in the emergency needs, can use these loans efficiently and harness any financial complexity.
- Easy online procedures:
The overall platform of these loans conducts through online and with the help of that, the loan applicants do not face any hassles while applying for a loan, as they need to fill the details, which are spotting the errors and providing the loan calculator, if they want any calculation.
- 24/7 Services:
Many direct lenders are available 24/7 for the borrowers to help them for coming out from any financial hassle. The best example for these loans is payday loans and text loans, which are used in the earnest situations by the borrowers at any time. While applying for such loans, make sure that the lenders is working for 24/7, if the time does not falling under the working hour.
- Secured networks:
As the overall procedure conducts online, almost all lenders use secured networks or you can ask them that either they are using or not to keep your details confidential from any other party.
Are the financial services of the direct lenders costly or cheaper?
The answer depends upon the nature of the policy, you are acquiring. People, who are borrowing loans for bad credit, no guarantor loans, loans for unemployed have to pay higher interest rates due to the bad credit history, no guarantor or no income status. In case of payday loans and text loans, the interest rates are also; high because these are unsecured loans and the lender can only secure the money with the interest rates. Deposit any collateral, equals to the cost of the loan, show a guarantor or show the good credit scores to get reasonable interest rates.
An alert in the End
To keep your details confidential from the hackers, you must be aware that from where you are applying for a loan. Make sure the lender is legitimate by doing enough research on it. Read the terms and conditions of the lenders to decide properly whether you should apply for a loan or not.