Take Easy Loans
If you need a loan you can approach either licensed money lender or bank. In many countries money lenders needs to get a license and be registered under the registry of money providers.
The limits, interest rates and policies are regulated by this registry.
Advantages Of Taking Loan From Money Lender:
Rapid funding of loan: Getting a loan from a bank is not that easy. There are a number of formalities and documentation that needs to be undertaken when taking loan from a bank.
All this takes a lot of time in securing the loan. Private lenders provide the loan at a faster speed. There is less documentation and formalities involved when taking loan from money lender. They can speed up the process of providing the funds.
Flexible term structure: Banks do not provide any flexibility in providing the loan. They need to follow all the terms and policy. They cannot make any changes or compromise with their policies. Private lenders are very flexible. They can restructure the payment and collateral release process for the borrower.
No prepayment penalties: Banks charges certain fees for prepayment of your loan.
If the loan is repaid fully or in part before the due date, the bank charges certain fees as prepayment charges. This is not in case of money lenders. There are no prepayment charges charged by the money lenders.
Advantages Of Taking Loan From A Bank:
Tax and financial planning advantage: One can get the benefit of tax deduction on the interest charged by the bank on the loans. This can enable the business to plan their budget and make other financial planning.
Speed: The approval for the bank loan is almost immediate after making an application for the loan. The process of making a bank loan application is very easy. It can be done through online too.
Advantages Of Secured Loans
- It is easy to acquire a secured loan
- Easily approved against collateral loan
- Repayment period is longer
- The loan is given on the basis of your credit history and credit score.
- The interest rate is either fixed or flexible
Advantages Of Unsecured Loans
Fast approval: It is the biggest advantage of taking an unsecured loan. You can get the loan within a day due to their fast services and speedy process.
Fixed interest rates: The interest rates of the secured and unsecured loans are comparably different. The unsecured loans are very high as compared to secured loans but are fixed. The interest rate is as per the contract agreed upon by both the parties.