Commercial banks try not to put themselves at risk so they often refuse your request for a loan. There may be several reasons for this. For example, it can be poor credit history, low income, insufficient documents, etc.

What should you do if the bank refused a loan but you need money urgently? In this case, private lenders come to the rescue. They are ready to give the borrower a personal loan with good interest rates.

Who is a Private Lender?

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Image by Gerd Altmann from Pixabay

The moneylender earns more profit on loan interest than, for example, if he invested this money in other projects or put it in a bank. This type of lending is becoming more and more popular. You can find these types of lenders by ads on the Internet and newspapers. Requirements of a private lender are simpler than banking.  You have a better chance of being approved for the loan that you need.

Due to the development of information technology, it is easy to find the necessary information. Offers for loans from a private person can be read both in the media and on bulletin boards on the Internet. You have the ability to contact the different lenders to find answers to your questions.

It is allowed to contact intermediaries who will help to find a reliable lender and will guarantee his honesty. But this service costs money. 

Lender’s Reliability 

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Image by Gerd Altmann from Pixabay

Having decided on a lender, you need to make sure of his reliability. This can be done independently, without involving additional sources of information. For this, you need to do the following:

  • Check the lender’s phone number through any search engine on the Internet. This will reveal a list of his ads on sites and different reviews.
  • Pay attention to the email address of the lender. Try to write a letter there with questions and review the answers carefully you receive back.
  • Check the email through a search on social networks. If the address is used frequently, it could be a fake organization that may be registered to it.

How to Get a Personal Loan

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In most cases, people will take a loan with bad credit from a private investor without collateral to develop a business or purchase a house. To do this, you need to find the most suitable website and submit an application. After this, you need to coordinate with a representative and provide the necessary documents.

Personal Loans Nuances 

Private lenders give loans only after signing a special document. This document is legally binding and gives the creditor the right to defend his funds through the court. The amount of money can be issued both in cash and by bank transfer. This must be discussed with the representative assigned to you.

The legislation allows you to give a loan without a receipt, certified by a notary. This is allowed only if the amount does not exceed ten minimum wages. 

Featured Image by Pete Linforth from Pixabay