People are of this opinion, that taking loan from a lenders is always better than taking loan from the bank. It is nothing but a misconception. The biggest known fact is that all those individuals who are seeking loans don’t get loans from banks. Why? Well, there are different problem with everyone. Someone doesn’t have any security, someone doesn’t have that amount of income and there are many other reasons. At this point, it is the money lenders who come up as a saviour for such people. This is called bad credit installment loans.
In order to make your mind clear about these loans, some of the characteristics of bad credit personal loans are mentioned below:
- Lower and Fixed Rate of Interest: The best part about these loans is that the rates of interest are lower than that of the bank and they are even fixed. People are under this misconception that there are no fixed rates of interest on loans given by moneylenders. But there is nothing like that. Rather it is the money lenders who don’t charge any extra charges on the EMIs. These EMIs will be paid according to the proposed amount only. There will be no discrepancy of any kind.
- No Fixed Conditions: The money lenders are not so strict in their rules as the banks are. In a bank, if you are unable to provide fixed income proof, then you will not be considered as the one who can be given the loan. But this is not the case with the money lenders. They just see if the person will be able to repay the loan or not. Even if you don’t pay EMI on time, they will give you more chances
It will not happen like this that they will take away the money from you forcefully or anything of that sort. It is because they are not bounded like the bank is bounded by their rules and regulations.
- No Strict Rules for Loans: As it has been already mentioned that the money lenders don’t have strict rules for giving away the loans. They will just confirm if the person who is seeking loan, is genuine or not. If there is anyone who lies about him (a major lie) then they will not provide loan to that person. But this doesn’t means that they will not provide loan to anyone who came to them. It is for their security and for those who are seeking loans. There is no problem of any kind in such situations.