What Are The Benefits Of Private Loans?

If you’re looking into private loans, you might be wondering what the benefits are over a more traditional form of lending. Applying for a private loan is generally an easier process overall. This is usually due to quicker approval times, quicker settlements, and fewer requirements compared to banks. You may find it easier to get approved for a private loan if you have a bad credit history, as many private lenders specialise in lending to those with a bad credit history.

Read on below to find out more about the benefits of private loans.

The benefits of private loans

There are many benefits to applying for a loan with a private lender. Generally, most private lenders have a much easier application process compared to those of traditional lenders. It’s possible that a private lender won’t require as much documentation from you, and can have you approved faster than a bank will.

Many private lenders offer far more flexible loans, which can be tailor-made to suit your situation and needs. This means that with a private lender, you have less chance of being stuck in a one size fits all loan.

You may also find that it’s easier to be approved for a private loan compared to a standard loan if you have a bad credit score. Many private lenders offer specialised services and loans to those with impaired credit history, whereas many traditional lenders will not.

Some other benefits of private loans are:

Quicker settlement – If you happen to require a loan quickly, the approval process for private lending is faster, and usually involves less paperwork than those of a bank.
Specialised loans – Private lenders are often able to cater to those after a wide range of loans while having far less strict rules than traditional funding. This may be ideal for those seeking short term finance, or those in need of funding quickly.
Credit history – Having a good credit history may not be necessary to gain approval from a private lender. Many people seeking finance are rejected by banks for having less than ideal credit history go on to successfully apply for a loan with a private lender.

Easy approval- Non-bank lenders specialise in offering loans to borrowers in individual circumstances. If you do have a bad credit history, or if you cannot prove your income via the traditional methods that are needed by banks, private members may be able to offer you an easy solution.
Fewer requirements – Banks will generally want excellent credit, a good repayment history, income requirements, and proof of income when approving your loan. Private lenders often have fewer requirements, making the whole process much easier.
Flexible payment terms – Private lenders may be able to offer you a more flexible rate compared to a bank.

How easy is it to get approved for a private loan?

Applying and getting approved for a private loan is usually quite simple. One of the benefits of a private loan is that generally, there are faster approval times. This is usually because there is a lot less paperwork compared to a traditional loan, which may take weeks to be approved.

You may find that applying for a private loan is easier than applying for a loan with a traditional lender. Many private lenders have much less strict approval criteria, which means that you may not need to supply a private lender with as many documents as you normally would when applying for a loan.

How long does it take to a private loan?

Depending on your lender, approval for a private loan can take anywhere from a day or two to a couple of weeks. In most cases though, private lenders can have you approved in a matter of days, unlike traditional lenders.

However, this timeframe can depend on what you need to supply your lender with, and how long their checking and approval process usually takes. When you apply through your lender, they will usually be able to give you an estimate of how long their process will take.

When you’re applying for a private loan, you may be asked to provide documents such as:

Personal identification – Most lenders will need you to provide documentation that proves your identity, such as a passport, driver’s licence or birth certificate.

Employment information – Generally, this needs to be evidence of your current salary or wage, plus any extra income you may be receiving. Your lender may also need to see other proof of income such as your most recent payslips or tax returns.

Financial information – Your lender may ask for proof of your financial situation. This may include whether you own your home or rent, and proof of your assets and expenses. Your lender may also ask you to provide proof of any savings with other banks if you have any.

Any other debts in your name- Your lender may also want to know about any other debts you have. This may mean providing any other credit card or loan statements that you have.

Before you begin your application, it is always a good idea to double-check with your lender to find out exactly what you need to apply. That way, you won’t be trying to find documents at the last minute. Every lender is different, and every application process may vary depending on your lender.

Where does Tiger Finance come in?

With Tiger Finance, we can help to get you a loan easily. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved.

We have helped countless Australians get approved for private funding. We understand that lending criteria from other lenders are too strict, and can stop you from achieving your goals. That’s where Tiger Finance is different.

How we can help

Our finance specialists can help you find the right loan for your project. If you are one of the many Australians finding getting a loan difficult, Tiger Finance can make the process quick and simple. Call our loan specialists for your free initial consultation today!