What Does Direct Lending Mean to Me?

Posted by Katherine Felix on January 22nd, 2019

When the standard monthly income of the individuals seems insufficient to cope with both expected and unexpected expenses, they tend to move towards the lending market. Asking money from the relatives or friends may be a way but it can be embarrassing quite some time. Applying for the loan comes as the last option. The growing demand of the different sorts of loans really indicates that the dependency on the external funding sources has really increased and people are now accepting loans as their secondary source of income.

One cannot forget the role of direct lending into the growing sphere of overall loan market. Like the banks, the lenders provide the loans directly to the borrowers, but unlikely the banks, they do so largely through the online process. Not only the online process but also the limited inclusion of loan obligations really attracts the large number of borrowers. Especially in the UK, the options like loans without guarantor are enough to describe the significance of direct lending.

Often relates to FinTech Market

Time is running as such where the people cannot depend too much on the banks for the financial assistance. If they do so, then getting the help instantly may not be possible due to cumbersome application procedure and the strict involvement of obligations. To ease such pressure from the borrowers, the concept of FinTech had arrived and now, it has become so much popular among the loan seekers.

Most of the direct lenders are the part of this modern concept of lending. It is the amalgamation of Finance + Technology, where the loans are offered through the simple and secure online process. It means the lenders are offering the loans through online medium with minimum documentation required.

Guarantor’s Presence is No More Obligatory Now

Direct lending provides further assistance to the borrowers where the lenders do not consider the presence of the guarantor as important as it used to be in the past. They are ready to give nod to the loan applications despite the empty column of secondary borrower’s signature. There is no denying to the fact that the presence of a reliable guarantor ensures benefits like large amount to borrow on low interest rates. The problem is that not all individuals are fortunate enough to be backed by their friends or relatives.

In preventing the tough situation to become lot tougher, the lenders belong to direct lending accept only the borrowers’ employment status, instead of the guarantor’s signature.

Process to Apply For Loans Has Become Quite Easy Now

Nowadays people do not have enough time to follow lengthy steps in order to apply for the loans. And of course, in the scenario of financial emergency, one certainly hates to get delayed funding access. Not the conventional lending institutions but the direct lending provides online access of getting help instantly. There is no reason to discuss why borrowers found them preferable, as they can apply for loans white sitting at their home.

Getting the loans without guarantor and that would be through online medium is like the dual benefits for any borrower. Now tackling with the financial urgency is no more a problem. The direct lending market has enough to offer you where ‘no guarantor’ is just a one exemption. People with bad credit scores, unemployment, and with no collateral can also find the lending doors open for them