Private Lenders Personal Loans

Private lenders personal loans can confidentially and quickly provide a consumer with the cash needed for his or her personal financial situation. A private lender personal loan is the most highly requested type of funding. Sometimes called signature agreements, these lending programs allow the individual to borrow money based upon their good credit without placing any possessions as security for the agreement. Unlike some assistance programs, these can be used for just about any financial need or want. "And let us not be weary in well doing: for in due season we shall reap, if we faint not" (Galatians 6:9).

This type of funding is especially attractive for non-homeowners and for individuals who need a one-time large sum of money for an immediate need. Those who don't own their own home don't have the ability to apply for home equity programs, so private lenders personal loans provide a much needed source for these individuals. Plus, a private lender personal loan can be more attractive to a homeowner than a home equity program since it typically requires less paperwork than a conventional funding program and approval times are faster. Plus one doesn't have to risk their home as collateral.

Approved amounts vary widely, ranging anywhere from $500-$250,000, but more typical amounts are $1000-$3000, repayable on a monthly basis within a maximum of 3-5 years. The amount a person can borrow depends on their credit history and current earnings. When applying for private lenders personal loans, banks will ask for employment verification, such as a pay stub, and will run a credit report. With good credit, a bank may loan up to four times your monthly salary for a year, but policies vary from bank to bank. Because a private lender personal loan is unsecured without collateral, rates are higher than secured loans, ranging from 12-20% but still less than the interest rates on credit cards.

Since lenders carry more risk with this funding, not everyone can qualify. Those with credit problems will have a more difficult time qualifying and will be awarded smaller sums since the bank has no guaranteed property or assets to repossess if the consumer defaults. If a consumer has credit problems, they will also have to pay a higher interest rate on the private lender personal loan. A person can quickly compare rates and apply for funding by using the Internet. Also, the individual can check with local banks and credit unions in the local area.

Even though this agreement is unsecured without collateral, defaulting is not without its consequences. Banks can pursue the funds owed to them through the court system and court decisions can garnish the consumers wages. It is important for the consumer to feel confident that they will be able to repay private lenders personal loans before agreeing to the terms. This program can provide the funds a consumer has been seeking for home repairs, bill consolidation, or a dream vacation.

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