More than 50 reputed banks are performing their operations in UAE currently with national banks like ADIB and NBAD being the first priority of most individuals. With that being said, most people opt for these banks for any type of loan requirement. Lending a loan from a bank is relatively easy if you meet their eligibility criteria, such as having a nice credit card score and the minimum salary required to engage with any lender.
Despite the simplified process, a lot of people get rejected for either having a bad credit score or if they fail to meet the eligibility criteria. Some people find banks to be overcharging on interest rates and move towards a more feasible solution such as private lenders or loan agents. These lenders offer the same amount of loan but on a much lower interest rate along with a number of other benefits such as a flexible payment cycle. Moreover, they usually don’t have many restrictions over the loan policies and borrowers don’t have to worry about getting rejected on personal grounds.
Here we highlight some noteworthy benefits Private Lenders have to offer:
One of the main reasons people choose private lenders as a better alternative is the liberty of restrictions that most banks impose these days. Due to these restrictions, a lot of applicants get rejected by the banks and therefore they approach private lenders for their need for money. These lenders do not have any minimum salary requirement and may not even overlook the applicant’s eligibility, resulting in an instant finance approval.
Much Lower Interest Rates:
What attracts people the most towards private loan agents is that they provide a much lower interest rate compared to most banks out there. Even a single percent cut off in the interest rate can save a lot of money for the borrower assuming that the loan values are usually large and require years of monthly payments to complete the loan term. Please note that not all lenders are guaranteed to offer you a low-interest rate but most of the agents do.
Flexible Monthly Payments:
Another benefit private lenders provide is the flexibility on monthly payments. You can select your payment cycles and estimate how long your tenure is going to be. You can end your term in a short period of 1 year or you might exceed it to 4 years depending on your needs and choices. Such flexibility allows the borrower to customize his loan agreement to save money, lower his monthly expenses or even shorten his loan term.