When most people think of where they want to borrow money or take out a personal loan, they imagine visiting a stuffy old banker in a cramped little office. But more and more borrowers are learning that they can save a ton of money on interest charges and fees while getting the personal loan they need from a private lender.
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Private Lenders Are Seeking You Out
A private lender can be an individual or company who wants to invest their money by making personal loans to other individuals. Although these private lenders are not affiliated with a lending institution (usually), they have capital to invest and want to try their hand at financing personal loans.
A personal loan from a private lender can be advantageous to the borrower because most private lenders are less strict about the type of borrower they are willing to loan money to, and this includes loaning money to those with less than perfect credit or derogatory credit files. Private lenders often say yes when traditional banking institutions and credit unions say no.
Money For Any Purpose You Might Have
Your personal loan from a private lender can be used for any purpose you might have. Some borrowers use the money to catch up on bills, buy a car, take a vacation or cruise, pay for a dream wedding for their child, or start a business. Others may choose to consolidate their debt or pay down higher interest debt.
Borrow Up To $50,000
Nearly any amount of money is available in the form of a personal loan from private lenders. Typical borrowers of this type of loan take out a principle amount anywhere from $1,000 up to $50,000, depending on their needs and their ability to repay the private lender. When deciding how much money you should ask for, take into account exactly the amount that you can reasonably repay the private lender. Remember, although a private lender is not a lending institution, they can seek a judgment, repossession, or foreclosure upon your assets if you fail to honor the terms of your agreement.
To secure your personal loan from a private lender, you will be asked to allow the private lender to place a lien against an item of value that you have proof of ownership on. Most of the time, this item is your home. When you have completely repaid your private lender, the lien will be removed. Keep in mind that your private lender will have all the rights that a traditional lender would have to ensure repayment.
The interest charged on your personal loan from a private lender will usually be less than or comparable to what a bank would charge you for the same loan product. In fact, most personal loans from private lenders carry far less interest charges and reduced (if any) fees on your personal loan. In addition, private lenders have great approval rates. You can find many private lenders online who are willing to loan you money now.