October 13, 2021
WHAT ARE THE KEY QUERIES TO ANSWER ON GUARANTEED LOANS?
By : Ellie Brown
Getting financial assistance at the crucial time and on the guaranteed basis is something like a huge challenge. It becomes more critical when you are not financially strong.
Looking at the lending market compared to other options is evident because it is the only source where desired funding looks practical. At the same time, lenders are also looking prepared to help people with minimum chances of loan rejections.
All these things have the connection with the aspiration of getting 100% guaranteed loans. It is the concept that has been going on for the last few years. However, lenders are bound not to advertise their loan products with guaranteed approval.
According to the authority norms, no lender can offer guaranteed loan approval as there must be something to prove the affordability of the borrowers. Still, the demand is there for 100% loan acceptance. Primarily, the reason is growing financial problems in the life of the people.
The significant thing is to understand the concept of guaranteed loans. Many people fail to do so, and they get trapped in mere advertisements. Later, they either fail to get the approval or have to pay the hefty interest rates.
In the blog, we will try to discuss guaranteed loans and the possible queries generated.
What are guaranteed loans and the features?
Guaranteed loans are those personal loans where borrowers get the desired funding by providing a personal guarantee to the lender. The guarantee is needed because the lender wants assurance on the loan repayments.
In other words, if you can ensure the lender about the proper loan repayments via a guarantee, then you will have almost the guaranteed approval.
In general terms, a co-signer or a guarantor provides that guarantee on behalf of the primary borrower. The concerned person is equally liable to repay the remaining loan, which the primary borrower cannot.
On the broader aspect, the personal guarantee for the loans is determined by three significant factors. One we have already discussed is the guarantor. Still, we summarise it here:-
- A Guarantor with a good credit history
- Collateral Consists of an Asset
- Stable Monthly Income (full-time or part-time)
You don’t need to provide all these, but at least one of them should be there.
Another thing is that the names of loan products change according to the personal guarantee. Suppose you are presenting a guarantor, then it means you are applying for no guarantor loans. With collateral, you are approaching a lender for secured loans.
With no guarantor and no collateral, you want payday loans type of funding, such as quick loans, unsecured loans, small loans, bad credit loans, no credit check loans, etc.
The recent trends in the UK confirm that most people opt for income-based loans, especially when they have a financial emergency.
General Queries On 100% Guaranteed Loans
There is no doubt that guaranteed loan approval is the matter of debate among financial experts. It is primarily because borrowers have a lot of questions in their minds.
Let us discuss about those queries and find out their answers as well.
- How to find out the lender for guaranteed approval?
The first query that comes into the mind of the aspirants is that where to borrow the funds. The market has both the options of conventional lenders and modern-day lenders.
Traditional lending institutions like banks offer certain types of loans. They are more reliable, but at the same time, the loan process is stricter too. Borrowers who are in financial emergencies may find it challenging to get a quick and guaranteed loan.
In such a scenario, approaching online lenders is more practical. They pursue a more flexible approach than the conventional counterparts.
- Is there any scope for those people with bad credit or very poor credit?
The most significant concern of guaranteed loans is for those who have poor credit issues. These individuals need funds, but their past credit errors are not allowing them to get assured loan approval.
Here too, opting for the private lenders who offer online loans is the right decision. They can accept your loan application through the ways like no credit check or soft credit check.
- What will be the interest rates on the loans?
There is a common perception of getting guaranteed approval. One needs to pay the higher interest rates. However, it is just a myth because you can get loans on lower interest rates if you have presented a guarantor or pledged an asset.
Every lender wants confirmation from the borrowers’ end on the timely loan repayments. Now, they have that confirmation either through sensible repayments from the borrowers or through collateral or guarantor. In that case, they can offer loans at a lower interest rate.
- Should a broker be involved to get the best deal?
There is another trend going on of approaching the loan broker to get the guaranteed approval. As the loan aspirant, you need to understand that no lender can offer guaranteed loans even if it is found out by the broker itself.
Going behind the broker will only add to your financial burden, as you have to pay their fees too. Instead, you should generate skills inside you to find the reliable lender who can at least offer maximum loan approvals.
Nowadays, everything is on the Internet and you can do the research there.
In a nutshell, the concept of guaranteed loan approval looks nice to read, but you need to make extra efforts to get this in your favour. Once you are good in your actions, the solution is there for you. Otherwise, you will be lost in many queries.