Situations are not in your hand if you face a sudden harm from your financial emergency. Overall financial balance of your life gets affected eventually and you quickly realise the need of availing the loans. It is natural and you cannot do anything. Fortunately, 2019 has been a year of FinTech lending and due to that, you have multiple options to utilise.
Problem does persist if you are gaining some government benefits, whether because of unemployment or physical disability. Some lenders are not ready to accept the loan applications, as they think these benefits are enough for them. It is where FinTech lenders have changed the scenario and they are now considering the applications on loans for people on benefits. While writing this blog, my motive is to make you understand the value of getting these loans at the most critical financial period.
Let’s start here…
Living on benefits, such as employment allowance, jobseeker’s allowance, housing benefit, state pension and many more are provided by the government to help the concerned individuals. The need of loans does differ from them because not every time these benefits work in your favour.
Process that Makes You Comfortable
I am starting with the loan process. Yes, it is an important aspect that most of the borrowers keep into their mind. The tradition says loans have to be applied with a proper paper-based format and lenders have to go through the credit history of the borrowers before confirming the loan application.
On the other hand, the modern-day lending offers an apt alternative in the form of paperless format i.e. online loan application. You just have to send your loan application from the lender’s website and the approval followed by fund disbursal comes on the same day. This is indeed a positive aspect of FinTech lending.
Obligations are no more an obligation for borrowers
Yes, my motive is clear here to stay that loan obligations are no more to worry the borrowers. Again, I want to compare here between traditional lending and new-age lending. In previous years, lenders made mandatory the presence of the guarantor and pledging the collateral, if the amount is huge.
Nowadays, the trend is of small online loans where borrowers have the exemptions of getting loans despite not having a guarantor or collateral. However, they may have to pay a bit higher interest rates, but the comfort of getting easy approval on loan applications, due to the absence of these conditions, offers every borrower a sigh of relief.
Loan process reached at borrowers’ doorstep
This is another aspect that I would like to emphasis on. It is true that borrowers do not require travelling towards the lender’s virtual address to complete the loan procedure. Now, lender’s representative himself comes at your home to offer you the cash required. According to me, this is the biggest benefit of modern lending policy and many lenders are following it when they are providing doorstep loans like provident.
Borrowers have all the convenience that they can get. Besides, they do not need to bring any guarantor or collateral. However, this facility is just for the short term financial purposes and amount like £5000 maximum. Also known as the instant cash door-to-door loans, these the perfect for those individuals who have some sort of medical problem and they cannot travel too much.
Now I am taking my discussion to the concluding part…
There can be two major reasons behind the preference of such loans:
- People want to expand their spending capacity
- They may have financial problems and that’s why they want loans to their favour
Reasons may be anything and probably, lenders may not be interested to the loan purposes. However, they definitely consider your repayment capacity. As long as you can convince them, the loan providers should have no problem to lend you. My suggestion would be to you is never apply loan when you ‘want to’ purchase anything rather apply a loan when you ‘have to’ buy an important gadget or doing shopping for an important event.
Getting loans for people on benefits through the doorstep funding service is like dual benefit to you. It means options are there to utilise, you just have to make their best use.