You want to build your dream house and looking to get loan from an organized bank, what if, you have a bad credit score. In the current situation of increasing non-performing assets, banks are very critical about lending loans. In this case, you probably will not get a loan from bank
What about your dream then?
You can ask a friend or your family member for loan or collateral with little or no interest. If nothing works out for you don’t worry, you can go to a private lender.
Private lender is one who is not regulated by the central bank in India (Reserve bank of India). So, there is no upper limit for interest rates charged by private lenders.
Advantages with private lender
- Less or no paper work; funds will be released instantly so, you can right away start your work.
- They will never look at your credit score.
- No prepayment penalty.
Disadvantages with private lenders
- Interest rates will be high compared to other formal sources of money lenders like banks, non-banking financial companies.
- There is a chance of cheating; since the lending procedure is not transparent.
So, I suggest you to go for private lenders only as a last resort.
Recommended Read :
- What is a Personal Loan?
- How to Get Personal Loan?
- Personal Loan for Women Employees
- What is Personal Loan Eligibility and Benefits?
- Facts to Know Before Applying for Personal Loan
- Beware of Personal Loan Frauds
- Gold Loan vs Personal Loan
- Personal Loans Vs Mortgage Loans
- What is Unsecured Personal Loan?
- How to Get Loan Against Insurance?
- How to Get Unsecured Personal Loans?
- Secured Loan vs Unsecured Loan
- Pros and Cons of Financing Business With Personal Loan
- Risks and Benefits of Combining Personal Loans
- Pros and Cons of Prepayment and Part Payment of Personal Loan
- Loan Against Car
- Who are Private Lenders?
- Processing Fee for Loans