When it comes to taking loans, a large percentage of individuals develop fear due to a lack of knowledge in the field. This makes them suffer silently as a result of inadequate funds to meet their daily needs. If you are looking for a lender to secure a loan with, worry not as we are here to guide you on how to pick one.
EXPERIENCE
This defines the duration the lending institution has been offering the services. It highly determines the quality of the services you get from a highly experienced institution. The longer the period of service by a lending institution, the higher the chances of delivering the best services.
This means when looking for a lending institution, go for the one known to have been offering the services for the longest time as they have obviously worked on their weakness and disadvantages that affect the client. It is also rare to find any complaint in terms of service delivery. This, therefore, making client life easy in acquiring loans and paying for the same.
FLEXIBLE MONTHLY INSTALMENTS
The question that you should ask is, how flexible are they with your payment schedule? The monthly installment is very crucial as it determines your disposable income. In other words, the income that you are left with after all the deductions are made from your net take home. One should be very keen on the loan tenure a lending institution is willing to give. If an institution has long-term loans, then it’s worth borrowing from, but if it only offers short-term loans then, it is not the best institution to borrow from, especially when it comes to massive amounts.
INTEREST RATES
Lending institutions offer varying interest rates. Some calculate their interest rates on reducing balance while others calculate a fixed rate. A reducing balance is whereby the interest rate is calculated on the Netbook value of the loan, while the fixed rate is applied on the principal loan amount.
Interest calculated on reducing balance is usually less than one calculated at a fixed rate. So, you should consider applying for a loan from a lending institution that calculates interest on reducing balance method. Also, you should compare the interest rates from different lenders and pick the one with the lowest rates.
RESPONSE TIME/CUSTOMER SERVICE
The response could be to the questions raised by the clients in an attempt to acquire more information on loan services. Also, a response could be time taken to get borrowed money into your account. In general terms, this is customer services offered by the lending institutions.
It is important to consider the lending institution that is offering these services as quickly as possible in order to meet your unfinished goals without delay. The time taken to get borrowed money really matters because mostly the need for money is always urgent. It could be to clear school fees, pay hospital bills, complete construction, and many other needs name them, all that need instant cash.
GOOD DOCUMENTATION
When it comes to documentation, there should be no room for doubt. Information should be given in detail and be easily understood by everybody reading it. Documentation could be in soft copy or hard copy. Either way, a client should go for the lender who offers clear and legal documentation to avoid inconvenience in the near future. In terms of loan acquisition information like; requirements to qualify certain borrowed amount, interest rates, penalties available on default, distribution in a monthly payment of the acquired loan, and turnaround time should be clearly stated on the contract document.
BRANCH AVAILABILITY
This is where there are sub-branches formed from the main branch. They offer the same services offered by the main branch. When a client is choosing a lender, it is essential to go for a lender who has several branches for quick accessibility. This makes the work easier by offering fast services since one can go to the nearest branch from the place of stay.
This is because some people are never comfortable with institutions that don’t have a physical location nearby and, therefore, offer online services instead of those who cannot access them. At the same time, the client could be lacking enough time to travel to the main branch to be offered services that they need.
ONLINE BANKING FEATURES
This entails all activities done via internet means. Could be through gadgets like; phones, computer, or laptops. Online activities make work very easy and quick. To choose a lender, one should also consider those who offer online services like LoanPig.co.uk. This is because if a person requires an urgent inquiry, they do not have to travel all the way to the bank. He/She can comfortably and quickly get help from the online services that would not require approaching the bank physically. This eliminates the cost of traveling and time spent to get to the bank.
TURNAROUND TIME
This is the span of time a lending institution takes to approves your request for the loan and disburse it into your account. One should consider a lender, such as BizLoansFast, with a quick turnaround time. This will help you to solve the unsettled goal as fast as possible. Some of the lenders take a longer time to respond to the request made, causing delays in the intended activities. At the same time, the individual could urgently be in need of the money. This lead to a lot of suffering and inconvenience on the part of the client, which could not have occurred if the turnaround time was quick.
Conclusion
After going through the above tips, it becomes clear for the features to consider before choosing a lender. One should not worry about the end result when it comes to repaying the borrowed money. And you should know your options, and the pros and cons of credit lines and another business financing. This way, you will weigh all the features before deciding which lender to use for offering the services hence making it easy to meet the urgently required needs at the moment.
