Private Loans
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Let’s face it, life is expensive. Owning a home, buying and maintaining a car, buying groceries, the costs can add up. Luckily, most of these exepense can be covered by your monthly income.
But, for larger or unexpected expenses, taking on some good debt is often necessary. Anyone looking to apply for a loan should keep an eye on credit. Having a healthy credit score and history can help the appplicaiton process smoother. Want to check your credit score for free? Check out Comparehub.
This is particularly true when unexpected expenses pop up. To help cover the costs of a large or emergency expense, a loan from a private lender can help.
What Is A Private Lender?
As you could imagine, a private loan is a loan from a private lender. But what makes a lender “private”?
Essentially, a private lender is any lender who is not associated or affiliated with a traditional financial institution. Normally, these private lenders are not as constrained by regulations and have much more flexible lending requirements. They often accept borrowers that banks and other traditional financial institutions reject due to poor credit.
A private lender can be a company, a group, or even simply an individual. The private loans that they offer work very similarly to the loans offered by a bank or other traditional financial institutions.
However, because they accept borrowers with poor credit or finances, many private lenders will charge slightly higher interest rates to protect themselves from the additional risk they take. Of course, the actual rate and the terms of each lender will vary.
What Requirements Do You Need To Apply For A Personal Loan With A Private Lender?
The requirements required are dependent on the lender you choose to apply with. However, in general, most lenders will require:
- Age – To be 18+ years old or the age of majority in your province
- Income – To have a reliable source of income
- Debt – To have a reasonable debt-to-income ratio
Steps On How To Choose A Private Lender
How To Find A Private Lender In FundsLenders?
Step 1 – Know What You Want
Depending on where you live, there is a very good chance that there are multiple private lenders in your area that would be willing to work with you. So how do you go about finding one to work with? You should have a good idea of the type of loan you’re interested in. Different lenders will have different specialties and will work better for certain situations. Know the kind of loan you want, how soon you need it, and how large it should be. Once you know what your needs are, next you need to look closer at the available options.
Step 2 – Compare Lenders
This is the research phase of the process. Look for an online presence for any private lender you might want to work with. Do they have any online reviews? Are the reviews good or bad? Does it seem like they have a good reputation? Are they advertising their rates, terms, conditions, fees, etc.? During this research phase, you should be able to weed out the good from the bad in your area. The lender you ultimately go with should have a good reputation, offer what you need, have impressive experience, and be somebody you are comfortable working with.
Step 3 – Apply
Once you’ve found a private lender that you like, you can apply for the loan. Depending on the lender you can get funded within a few hours to a couple of days after approval.
Get your Private Loans here at Fundslenders:
Types Of Loans Offered By Private Lenders
Private lenders offer many of the same loans you expect from banks. Some popular loans you can find with a private lender include:
Private Mortgages
There are numerous private companies and individuals who offer private mortgages. These mortgages are often easier to qualify for as these lenders are not federally or provincially regulated like the banks. Meaning the stress test and other requirements are not enforced. However, these private mortgage lenders typically charge higher interest rates and can have shorter terms than banks.
Private Auto Loans
Like mortgages, there are also a number of private auto lenders that offer auto loans. You can get a private auto loan straight from the lender or through car dealerships that partnered up with private auto lenders. Many dealerships do this in order to provide financing to individuals with good and bad credit. However, like any private loan, it often comes with high-interest rates and fees.
Private Student Loans
Many student loan programs are on a federal and provincial level, not everyone can qualify for them. That’s when some students have to rely on private student loans. Depending on your private lender, they may offer you a grace period after graduation, however, some may require payment right away, like a regular personal loan.
Personal Installment Loans
Like banks and other traditional financial institutions, private lenders also offer personal installment loans. It works the same as the one you’d get from a bank, except the interest and fees charged will be higher. You may also not get terms that are as flexible. However, if you’re someone who is struggling to get a personal installment loan from a bank, you’ll likely find a private lender who’d be willing to lend to you.
Can You Get A Loan With Bad Credit From A Private Lender?
Yes you can at Fundslenders. While some private lenders will work with individuals with bad credit, others may not. As mentioned previously, each private lender has their own set of requirements and will decide what loans to offer, and what rates or terms will accompany those loans. It’s always a good idea to ask your private lender about their eligibility requirements before applying.
If you have unique borrowing needs, don’t be afraid to ask a lender if they will be willing to help you out. They will generally be more willing to do so than traditional lenders.