Getting a loan is often considered to be a very tedious affair. Many people shy away from getting one simply because they feel that they would not be able to get approval on their application.
I cannot get a loan because I am just starting working about three months ago;
I cannot get a loan because I was not able to repay my last loan on time;
I cannot get a loan because I am a freelancer and my income fluctuates more than the stock exchange market;
I cannot get a loan because I am too young; I am of the feminine gender; I am from a particular ethnicity, race and nationality.
These are just a few of the notions that run through our minds when we think of applying for a loan.
I am not going to say that these are not genuine concerns, and I would also go ahead and say that these concerns were all true at one point, but the good thing is that we have long crossed that point.
The orthodox, societal standards have been removed from the banking industry, and the online lenders are a reason for that.
Cheers to them and all their work to make it possible for us to get a loan with just a few clicks on our phone.
Now, we are going to take a look that three of the most feared obstacles that often used to account for rejections and only rejections.
Today these are not hindrances; the loan providers have broadened their thinking spectrum and made it worth the while of the borrower.
Here is how.
When you have no employment?
First, let me be clear about the term employment and what majority of lenders perceive it as. According to the loan providers, employment is an income source that makes you competent to repay the loan and avoid any lapse in payment.
For many of them, a job has to be full-time. You need to work 9 hours a day, five days a week in a company with a desk, only then can you be regarded as an employed individual.
At present, there have been certain modifications in the bylaws of lenders that have given room to a broader term for employment.
You can be a freelancer or a part-time worker;
You can be in between jobs;
You can even be on government benefits for the unemployed;
And still, you will be given a chance to apply for a loan and get an approval of the same. Unemployed loans with no guarantor are proof of just that. You can try applying for one, and I guarantee, you will be glad that you did.
When your history isn’t glorious?
People make mistakes in their lives, and they are always going to make mistakes. This is one fact that is inevitable.
These mistakes often tend to financial.
A person borrows a loan hoping for a better and brighter future. However, the opposite happens. In such cases, repaying the loan becomes a burden; a burden that is too much to take on. So, he lapses in his repayment and garners low creditworthiness.
Up until the last decade, all the finance providers did not understand that a person’s past mistakes have a high likelihood of never repeating themselves. The borrower had to suffer for his mistakes for a lifetime.
However, at present loan lenders only focus on the present and let the past stay in the past.
When do you not have a guarantor?
The values of trust, helpfulness and honesty are virtues that have lessened in our society over time.
Dishonesty, deceit and cons have become more eminent than anything else. So, people have become more cautious and not ready to trust anyone easily, which is understandable; no one can be blamed for watching out for himself.
In terms of loans and their process, usually, a person is needed to guarantee your values and make the promise of returning the borrowed amount on your behalf, in case you are unable to, to the lender.
This becomes tricky when no one would trust you, and given the money is involved in loans, that trust wanes to become almost non-existent.
The realistic nature of the world we live in has brought an end to this kind of an obligation in the loan acquisition process.
Numerous lenders would be willing to give you the amount that you need, without you having to present them with a guarantor.
A borrower is regarded as a competent and responsible citizen, who has the potential of fulfilling the loan agreement that he is signing. So, hindrances, obstacles and implausibility have become a thing of the past and only the past.
Emily Rhodes operates as a Senior Content Writer at Easyadvanceloan for 5 years. She oversees the financial planning and monitoring of the cash flow. Emily also helps the firm forecast its financial standing by analysing the operational data and latest reports. It requires detailed research and predicting the trends before arriving at a conclusion. Emily Rhodes’s credible predictions and the best usage of problem-solving and analytical skills help the firm revise financial policies for growth. She ensures the best of her expertise by working in tandem with the CEO and Chief Operating Officer. Academically, Emily is a postgraduate with MBA in Finance from a reputed university.