One of the most profitable businesses today is money-lending. This is because there are millions of people around the country who need personal loans. To meet the demand for personal loans, thousands of lenders have come up over the years. However, all these lenders are not the same. Some of them have a nationwide reach while others only serve the local market. To find the best personal loan lender for your needs, you have to compare all the lenders operating in your city. The following is a list of personal loan lenders you can decide to borrow from:
Banks are the main lenders in the industry. They control a huge share of the market and have well-established systems for processing loans. They also have huge working capital, so they can afford to offer loans to thousands of people at the same time. Since every major town or city has over a dozen banks, it is imperative you compare them to identify the best one for your needs.
ii) Credit Unions
There are many credit unions in most towns and cities. Their main business is lending to their members. They usually offer better terms and conditions, however, you will need to first find a suitable credit union and become a member. Before you can borrow any money, you will have to build up your savings account. The maximum amount of money you can borrow is usually based on the total savings you have made since joining the credit union. In many cases, the borrower has to get a loan guarantor with significant savings to guarantee their personal loan.
The beauty of borrowing from a credit union is that you can get a personal loan with a lower interest rate. After all, credit unions weren’t designed for profit. In fact, every member of the union will get a share of the excess funds/profits based on their total savings. This means that the interest rate paid by borrowers is further reduced by the dividends or share of excess funds shared among members. If you need a personal loan urgently, however, credit unions may not be able to help you.
iii) Payday Lenders
If you need to borrow a small personal loan to cover your living expenses until you get your next paycheck, you can borrow from a payday lender. There are many of them on the internet, so you can easily compare the best payday lenders in your city. Please note that you will be required to pay back the cash advance and facilitation fee at the end of the month, so you cannot borrow more money than your monthly pay.
How to Apply for a Personal Loan
Obviously, you will need to compare lenders to find the best one for your needs. You should start by comparing the interest rates charged by different banks, credit unions and payday lenders to identify the most suitable lender for your needs. Be sure to also compare processing fees and other charges to ensure you find the right lender in your city.