When it comes to lending, borrowers always wanted a smoother and friendlier approach. Banks or mainstream lenders are certainly dependable but stringent policies leave less space for approval for many of the borrowers.

Take the example of certain circumstances where people need urgent money support, but due to strict policies, they receive a rejection.

People with bad credit situations, those living on benefits, and freelance workers always struggle to get a loan. Despite their intention and ability to borrow and repay funds, the traditional approach of banks does not give them an equal chance to borrow hassle-free.

Even for people with good credit scores, there are some concerns that make them yearn for alternative lending.

This is why direct lenders have become a preference for fund seekers. There are several key reasons for that.

Let us understand the REASONS why people these days choose direct money lenders over banks.

Speedy and convenient due to online procedures

Financial emergencies are predictable and harsh sometimes. They leave less and sometimes no space to follow a long process to arrange funds.

Banks have rational but slow procedures. On the other hand, direct lending is known for providing speedy and dependable loan solutions.

Right from the application process to approval and fund transfer, everything happens at a faster speed.

Due to the 100% digitized process, things become convenient. Also, the loan process is mobile-friendly. Thus, it is handy.

How relieving it can be for you to get instant money transferred to your account within 24 hours. In the case of an emergency, it is certainly life-saver support. Don’t you agree?

Decisions are not driven by credit score only

Banks are always biased based on credit rating while lending. No matter how good a person is doing in current finances, credit history always interferes with decision-making. This is the reason that people with poor credit history usually fail to get approval. No matter how serious or urgent their needs are, banks have their own decided criteria.

On the other hand, it is simpler to get poor credit loans on guaranteed approval if you have a strong current repayment capacity. Recent income statements and bank statements of 6 months are sufficient to let you borrow funds.

Now, people are no longer slaves to only one option of borrowing, which is a bank or a traditional lender. They now have direct lenders that listen to their concerns and offer approval based on current repayment capacity. No primary importance to credit scores.

Transparent, traceable, and predictable

As the applicant needs to follow only the online process, the complete procedure is transparent. Now, because it is transparent it is easy to trace your application status.

During the application process, you can check the latest status of your loan request online. Not only that but after receiving funds in your account, you can also check the status of the latest pending loan amount.

Something that is transparent and traceable as well will always be predictable. Borrowers always know what they are processing in the name of loan application. Also, a user-friendly interface allows them to access their loan account at any time.

Acceptance to all employment and income types

Banks always want to see borrowers either doing a proper white-collar job or earning turnover in millions if self-employed. Other than that, anyone earning through freelance work or a part-time job can only expect rejection from a bank.

A direct lender considers all types of income sources, whether from freelance or from government benefits. Therefore, anyone living on benefits or working full-time, part-time, or as self-employed can borrow funds.

It is always and only about the current credit purchase power that is considered as the most important factor. If an applicant can pay back the borrowed money, a direct lender is more than happy to lend.

No ‘one size fits all’ policy in case of direct lenders

Banks have same policies for all customers. There is no consideration to individual financial and personal circumstances. Whether it is about interest rate, repayment plans or applicable processing fee, same policies for all.

Direct or private online lending is completely different from that. Here, the liberal approach is preferred. Therefore, loan solutions are always customized to the individual circumstances of the applicants.

The flexible approach ensures that the majority of fund seekers get financial relief. With customer-centric lending policies, direct lenders make intentional efforts to help maximum possible applicants.

Easier no-obligation loan solutions

In the case of banks, if you want to borrow funds without a guarantor or collateral, you need to have strong finances in every aspect. Good credit score, strong income capacity with no pending bills, and whatnot.

But with a direct lender, you can get a loan without a guarantor or collateral as per your individual repayment capacity. This sounds like magic to those who have been rejected for sometimes even tiny reasons from a bank. Therefore, if you are searching for a loan at easy terms, choosing a direct lender can never be a mistake.

Doorstep funding is possible and available as well

Direct lending offers loan solutions to people from all walks of life. This is why, those who do not have a bank account can get a loan. besides, those who are not familiar with the new aged online borrowing methods can choose to get funds at home.

You can easily get doorstep loans from private money lenders but not banks. For that, you have to make a physical presence at the bank’s office. However, a direct or private lender sends its loan representative to the borrower’s place.

Such facilities and flexibilities are sometimes impossible to imagine in the case of banks. You can expect the least plausible loan policies there. Only when you have all things in the right place can you get a loan approval smoothly.

Conclusion

The factors above authenticate why people these days find it necessary to choose direct money lenders over banks. Borrowing atmosphere has changed considerably for good. All thanks to the new aged direct or Fintech lending that make things easier for the fund seekers.

Hence, if you are looking for a reliable loan solution and need funds fast too, direct lending is a promising solution. Another benefit is, you can easily pre-qualify for loans through soft credit check. This is another big relief for those with a poor or limited credit history. Take your step, make your decision and apply now.