loans without guarantors
  • Alan Jose
  • January 8, 2019

The obligation-free funding is convenient and also the process to borrow funds is easier now with the new age lenders. But there are a few things that you should keep in mind while finalizing a loan deal. No matter how convenient is the method of borrowing funds, financial decisions should be backed up by an adequate information.  

There are many lenders in the loan market. Every lender wants you to agree on its conditions. You should follow the guidelines of the loan companies but not everything is acceptable for the borrowers. Below are the 4 things that you should never agree on while taking loans without a guarantor.

  1. Upfront fee – Upfront fee is one the first elements that you encounter within the loan process. But this is not a vital part of the genuine and ethical lending practices. Do not agree if the lender asks to provide an upfront fee. There are many other names in the loan market, you can switch to them.
  2. Very high interest rates– The loans with no obligation of the guarantor have higher rates. There is no backing of a guarantor and the lender compensates the risk with a higher rate of interest. But if the rates are too high then STOP and give it a second thought. Express your concern to the lender and if still it is stringent then do not agree and say a clear NO. Customisation is there with every loan offer and that makes the deal affordable. If you feel that the loan company is not applying proper customisation, then it is not useful to take the loan.
  3. Stringent repayment policies – The loan companies usually consider the comfort of the borrowers and provide flexibility in the repayments. If a flexible repayment policy does not accompany your preferred loan, then it is better to deny accepting the loan offer. Instead of this, look for the alternatives with plausible repayments. In fact, several loan companies provide funds with flexible repayments despite the unemployment. In the doorstep loans for unemployed people without guarantor, you can change the repayment schedule in the middle of the tenure. The loan agent comes to your house and designs a new repayment schedule.
  4. Prepayment penalty – It is good to pay off the whole loan amount in once and to get rid of the obligation. The prepayment penalty can be a big obstruction. Never say yes to a loan choice that has a prepayment penalty.

The above points are important when you borrow funds. Follow them and repay the funds on time and there will be no negative impact on your credit scores.

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Amount of credit €2,500 for 2 years. Interest rate: 75.3% pa (fixed). 24 scheduled monthly payments of €204.29. Total repayment of €4,902.91. Interest: €2,402.91.Representative 107.57% APR.

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