Why Bank is Not the Right Choice to Apply for Short Term Loans in Ontario, Canad
Posted by jacob yard on February 19th, 2016
Be it a hot-shot business magnate or a fairly average or poor income individual, everybody comes across the need of borrowing cash time to time. While banks have always been the easier route to take to gather funds for nearly all kinds of requirements, their feasibility has become rather questionable in recent times. With bad debts piling up as we speak, banks have become rather choosy when it comes to lending. Because they don’t want to leave a dent in their bottom line, they often deny loans even to most eligible and credible borrowers.
Obviously here banks don’t appear to be a palpable choice when it comes to borrowing quick money. But wait, we have a few other reasons as well that strongly assert why banks are not the right choice to apply for short-term loans in Ontario, Canada.
Banks have always been notorious to cause unnecessary delays in the processing of loan application. They follow a very stern regime when it comes to approving loans, as they are extremely cautious of bad debts. While this is because of only a few defaulters, the common man has to endure its consequences. Furthermore, documentation for bank loans is extremely hassling and you will have to furnish possibly every single detail of your finances that often turns tedious. So, if you need a quick loan, avoid knocking on the doors of a bank.
Interest rates charged by banks for personal loans have increased tremendously in the past few years. This, in turn, compels borrowers to pay a considerable dividend to the bank that ultimately decreases the cash flow. High interest rate can also cause additional financial stress that doesn’t bode well, especially if you are facing trouble making ends meet.
It is not uncommon for banks to disburse only a certain percentage of the amount you actually need. While banks cite eligibility concerns over this, in most cases borrowers don’t get the desired amount even if they qualify for the applied amount.
With everything mentioned above, clearly banks are not the right choice when it comes to applying for short term loans. What is the alternative then? The answer is credit companies. These small financial institutions allow people to borrow quick money at subsidized interest rates without having them run into any kind of documentation hassle. Also, the loan amount disbursed is exactly the same as desired and is debited directly into the account of the borrower within a quick timeframe.
Author’s Bio: The author is a financial expert and lends advice on money matters. In this post, he explains why approaching banks for short terms loans is not a great idea.
