Has your bank rejected your loan application? Are you looking for an alternative? If so, you are in the right place. Traditionally, banks where the only option for those who wanted to take out a loan. However, in the last couple of years, the credit industry has expanded and diversified quite considerably and now UK citizens have a number of options for getting credit. These loan providers offer different types of loans including short term loans, personal loans, home loans, and payday loans. Here are some of the popular alternatives to banks if you need a loan in the UK.
- Online Lenders
If you are a frequent borrower, you may have heard of online lenders, also known as direct lenders. They are like banks but with one major difference: they don’t have physical branches. Online lenders have much lower overhead than other types of lenders, which translates into much lower fees and interest rates.
With direct lenders, the entire loan application process takes place online, which means that you apply for a loan from anywhere and at any time you want.
Advantages:
– They are convenient
– They have lower interest rates and fees than high street lenders
– Their loans are specifically tailored for those with poor credit
Disadvantages:
– They have no physical branches hence no face-to-face interaction
– Mostly they offer personal loans only
Why choose online lenders?
Being unable to talk to someone or interact physically can be off-putting, but online lenders have their own perks. You can apply for your loan and manage it any time and from anywhere. And, while credit check is a must for all applicants, many online lenders also offer loans designed for people with no or bad credit history.
- Peer-to-peer lenders
Peer-to-Peer lenders give out loans that work like any other loan, but you borrow them directly from the loan providers instead of passing through a middleman.
The entire process takes place online via a peer-to-peer platform. The online platform acts as a loan facilitator and matches you to the right lender while taking care of things like processing and collecting repayments.
Pros
– They offer a fast and easy application process
– Have low-interest rates
– Usually, there’s no early repayment fee
– offer greater flexibility when it comes to repayment terms and the amount of the loan.
Disadvantages:
– They are not suitable for long-term commitments
-The loans are impersonal
Why choose peer-to-peer lenders
These lending sites can connect you to lenders that willing to take a risk. This means that chances of your loan being approved are high even if you’ve been declined elsewhere due to poor credit.
- Credit Unions
A credit union is a non-profit financial co-operative that provides a range of financial services to its members, including savings and loans. It’s usually owned and run by the members who use their services.
Credit unions are similar to banks in the sense that they offer financial services and products, but the profit they generate usually goes back to the local community. They provide smaller loans than other lenders and are a cheaper alternative to lenders like payday loan companies.
These are some of the different types of loan providers in the UK where you can get good loans. If you are looking for cheap loans UK, at https://www.nowloan.co.uk they can help you. We have special software that can help you search the market for the best loan deal for you. Click the link to learn more about our services.
