The lending sector plays a critical role in assisting you financially when you most need monetary funds. Critically examining a list of licensed money lender allows you to make an informed evaluation of essential aspects.
Dealing with a licensed money lender safeguards your interests as they are obliged to abide by industry regulations. You avoid unnecessary headaches by borrowing from a legal source and conducting extensive research on your potential lender before proceeding.
Factors for Consideration
Lenders who indulge in marketing gimmicks are out to deceive you. To avoid unpleasant surprises, research every entity featuring on the list of licensed moneylenders to the last detail. Licensed money lenders believe in transparent dealings and support you through the entire process.
Evaluate the prospective contenders from the list of licensed moneylenders on the given six factors:
When the credibility of the lender you are evaluating is beyond questioning, you can count on them being trustworthy and reliable. A clean track record and a favorable reputation are plus points that should encourage you to proceed with your assessment of the lending authority.
Reading through the firsthand testimonials of existing customers is very revealing to establish the credibility of the said lender. Typically you should research the reviews posted on a couple of platforms before passing judgment. This ensures you are not misled by scammers posing as customers to serve an ulterior motive.
2. Area of Specialty
You begin the evaluation process with clarity on the purpose of borrowing a designated sum. Likewise, it becomes essential for you to dig deeper and find out whether the lender specializes in extending individual or business loans.
Accordingly, the repayment process and interest rates are chalked out. Familiarizing yourself with the specialty product on offer allows you to identify whether the prospective lender is a good fit for your requirement or not.
3. Interest Levied
The moneylender levies interest on the borrowed sum and you are obliged to repay the loan and the accrued interest. A licensed lender will typically not be unreasonable when calculating the rate of interest nor will surprise you with hidden costs. Exorbitant charges levied by the lender should set your alarm bells off.
Interest due is an added expense and impacts your regular budgeting. Avoid blindly favoring a money lender offering the lowest interest rate. Drive your decision after comparing all the related benefits. You may even come across lenders who levy a high-interest rate but also provide additional benefits of greater value.
4. Ease of Application Process
Moneylenders who have adapted to the digital medium generally have a more convenient application process with less documentation and faster processing. The practicality and accessibility of the process to apply for the loan are decisive factors. Preferably bypass lenders where the time and effort you need to invest is more.
5. Repayment Flexibility
You can maintain your creditworthiness when you repay your loan within schedule. Lenders who offer repayment flexibility ease your stress. Tight and unreasonable repayment deadlines are challenging to adhere to. Before taking the plunge, assess how practical it is for you to meet the specified timelines.
6. Contractual Terms
Carefully examine all the terms and clauses incorporated into the loan contract before signing the agreement. Penalty for late payment, the interest rate on the principal amount borrowed, repayment deadline, and the lender’s processing fees are integral highlights of such contracts.
Make sure you read through the fine print, clarify doubts that arise, and then seal the deal. Close all gaps and trust your instincts wherever finances are involved. Doing the spadework after entering into a contract with a money lender is not advisable as you have to then suffer the subsequent consequences.
Refer to a reliable online directory of reputed money lenders to make an accurate comparative study and smart financial decision.