Comparison of Borrowing Money From Bank and Lending Company

If you are in a situation when you need some extra money and think where to borrow it, this article will help you make the choice.

What requirements are put forward to the borrower when receiving a loan from a bank?

Upon reaching the age of 18, a person is considered an adult and may be responsible for his actions before the law. But, as practice shows, when applying for a loan at such a young age, most people receive a firm refusal. This is due to the fact that financial institutions take into account the risks of non-payment of loans, and try to give money to borrow more mature, responsible borrowers whose age is 21 years or more.

Even if you already know which banks have been issuing a loan since the age of 21, it will not be out of place to provide other nuances that you pay attention to when applying for a loan. So, every potential client who wants to take a loan should:

  • check in;
  • have citizenship;
  • provide passport;
  • stable income;
  • good credit history;
  • often – the guarantors, proof of income and documents from the place of work.

Consequently, in the search for information which banks give loans, it is worthwhile in parallel to collect documents in order to minimize time. Indeed, as practice shows, the time from the moment of filing an application to receiving credit funds can vary from three days to two weeks. And this, you see, is long enough if money is needed here and now. Banks carefully and scrupulously test their potential customers, thereby ensuring their minimum risk.

Should I borrow money from lending companies?

If the question is: is it possible to take a loan remains urgent and acute for you, and banking institutions are not in a hurry to please with positive decisions, do not despair. Many microfinance organizations operating in the state are also willing to cooperate with persons who are 18 years old. This means that after reaching the age of 21 you get more chances as confidence increases. Cash loan from 21 years without income certificate can also be obtained on the card of any bank, without much effort and time.

What are the advantages of lending companies to banks?

Of course, there is a significant difference between a bank a microfinance organization. Consider more.

  • The maximum loan amount in a lending company is lower than in banks. This is due to the need to reduce risks in the context of online collaboration. MFIs trust their clients, but especially when you first apply, you can count on a small amount. With a positive outcome of cooperation, it will be possible to take the amount more, and at the same time at a more profitable percentage.
  • Short loan period. This allows customers to reduce overpayments on loan interest, which is charged for each day of use of loan funds. That is, the faster the borrower returns the money, the less he pays.
  • You can get a cash loan without references from 21 years of age.
  • The minimum package of documents for the lending company. It should be borne in mind that when applying for a cash loan in a bank, you will need much more references and documents.
  • Hour mode, as well as the possibility of obtaining microcredit on holidays and weekends.

Of course, if you are interested in which bank you can take a loan on developing a business or introducing large projects, then the services of microfinance organizations will not work for you because of the small amounts of loan funds and the tight deadlines for their return.