The emergence of the online loan market is embracing new opportunities for both lenders and borrowers. The loan companies now can stay in touch with the borrowers, through round the clock existence. Similarly, the borrowers to have much more to avail besides the funds. The unusual approach of online lenders, allow them to borrow with varied flexibilities as features of the loans. Providing funds without the obligation of the guarantor is one of them.
The popular name for these loans is the no guarantor loans. They are available in abundance as every loan company offers them with multiple deals and features. They follow unusual lending practices. What makes them unusual and how it is affecting the no guarantor loans is a ‘worth to know’ thing.
Here is the strategy that online lending is implementing in the guarantor-free funding.
Same day decision
The applicant gets same day decision on the loan request. This has become possible due to complete online procedures and no documentation. It saves a lot of time of the applicant and they avail funds faster.
New ways to judge the affordability
In the online market, lenders have different ways to measure the repayment capacity of the borrower. Unlike traditional loan providers, that judge the applicant on the parameters of credit scores and security or guarantee they provide, the online companies look into current financial status. If the fund seeker has a stable financial condition in the current times, the lender is ready to consider his loan request.
Adjustment in rates for bad credit people
Everybody knows that loans without guarantor are higher in rates. Reason? They have no obligations and the lender covers the risk through high rates. Those with good credit scores can get some relaxation in the interest rates but the bad credit borrowers too can get the lower rate quote.
How? Simple! If the poor credit score is not from long in the credit record of the fund seeker, the lender can consider making adjustments in the deal.
Renewal policy is there to add extra time in the tenure
The online loan companies are also facilitating the loan term extension through renewal policy. This extends the tenure of the loan and the borrower gets the extra time to repay the loan. With high rates and hefty installments of guarantor-free loans, it may become difficult for the borrower to pay off the loan on time. Through this policy, he gets extra time without getting any mark of delayed payment on his credit history.
Unemployment is not a sin for the borrower
No matter how good you are in your recent financial records, if you do not have a job, there are no loans for you. This is how the banks work. They want you to have a regular income. Unfortunate! No use of blaming them, they are just following their own rules. But the new age lenders are friendly in their approach and provide short term loans for unemployed to the borrowers irrespective of employment status.
Borrowing opportunities are diversifying with time and it has become easier now to avail funds. This is making financial goals achievable and financial lives have become prosperous.