Difference between Getting a Loan Traditionally Vs. Personal Loan Agent

More consumers are now relying on personal loans for big purchases. They prefer paying this back in the form of Equated Monthly Installments known or EMIs. You can use the funds borrowed via a personal loan to meet any shortfall you experience, like education, purchasing a car, and medical emergencies. 

The traditional way to apply for a personal loan is to visit the lender’s office. Otherwise, you can contact a personal loan agent to help you out in the process. This article will be worth reading if you are looking for a lending option. The comparison between getting a loan traditionally and from a loan agent will help you decide the best. 

Understanding a personal loan

Personal loans are funds borrowed from a financial institute or a bank to meet personal needs. Lenders look at factors, like credit, income level, repayment capacity, and employment history to analyze someone as a borrower. 

A personal loan is unsecured. So unlike a car loan, it is not secured against any collateral like gold or property. You will not lose any asset in case of a default. Since the lender is at greater risk here, they will charge higher interest rates. Defaulting on a personal loan will be reflected in the borrowers’ credit report. It will make applying for a loan difficult in the future. 

The lending institute does not interfere in how you use the borrowed funds. You can use the funds for anything, like education, renovating your house, marriage expenses, buying home appliances, or meeting an unexpected medical emergency. You can also use the funds to invest in the business, pay the down payment for a new property, fix your car, and many more. You can use it for anything.

The eligibility criteria vary from lender to lender. However, the general requirements like age, income, occupation, repayment capacity, and more remain the same. Whether you are self-employed or a salaried individual, you must have a regular income source to avail a personal loan from any bank. Your credit history and the organization you work in also impact your eligibility as a borrower. The time duration of repayment can be anywhere between 1 to 5 years. 

Perks of taking a loan traditionally

Let us now check out the advantages of getting a loan traditionally below:

  1. Less paperwork

If you apply for a personal loan traditionally in the online mode, the process is 100% paperless. You have to upload the scanned copy of your documents on the applicant’s online portal and receive the funds in your bank account post-approval. The approval process is quick with limited documentation. 

  1. Time-saving

There is no need to visit a bank or lending institute physically. You can apply online from the comfort of your home. Go to their official website and apply after checking the eligibility. You will get the funds if you meet the eligibility criteria.

  1. Comparison of different lenders

You can visit the websites of several lenders and compare their interest rates before applying for anyone. Compare them for repayment time, eligibility criteria, additional charges, and EMI plans. You can get the best lender after proper research. 

  1. Receive funds immediately

You will receive funds instantly if you meet the lender eligibility criteria. If all your paperwork is complete, you can expect a quick distribution of funds. Submit your form online and get approved quickly. 

Perks of getting a loan from a personal loan agent

Loan agents generate leads that find borrowers for a lending institute. They help the applicant throughout the process conduct a background check to verify all the documents. Seeking help from a loan agent has the following advantages:

  1. Loan services at the doorstep

You get doorstep services through a loan agent. They come to meet you in person at your home or office to collect documents, clarify doubts, take signatures, and more.  

  1. Customer support

A loan agent guides the customer at every step of the loan application, approval, and fund disbursal. You get satisfactory services due to the customer-centric approach. They are trained to solve all the queries of the customers. 

  1. Help for loan approval

You will receive end-to-end assistance from a loan agent. They will also guide you to take remedial steps if you have a low credit score. Loan agents work with multiple financial institutes. So they will help you choose the best option, as per your situation and requirements. They will maximize the loan approval chances by lending with the hassle-free eligibility criteria. 

Conclusion

Now that you have read the benefits of applying for a loan traditionally and through a personal loan agent, choose the one best suitable for you. Different people will select different approaches in varied situations. To get more details regarding a personal loan agent kindly visit Andromeda and submit your details.

You may also like