Personal Loan Lenders

Many States Forbid the Offering of Cash Advance and PayDay Loans

Nearly 12 States have forbid the offering of Cash Advances and PayDay loans in an effort to satisfy consumer interest groups’ demands to check the unjust practices. What basically makes PayDay loans unjust is the incomparable interest rates which are imposed on small amounts and the excessive fees that these lenders take in return for providing easy loan.

Seeing the easy availability of lenders offering quick small loans, many consumers flocked towards them. The results showed up really late and on a mass scale with a lot of people grappling with financial tragedies after they sought to Cash Advance or PayDay loans. The reality of such Cash Advances and loans dawned upon many groups and advocates who brought this matter before the legislature and demanded strict action. Consequently, lately in the previous year, the courts either imposed bans on the practice of PayDay loans and Cash Advance or defined the maximum rates that could be used with them.

These types of credits spoil the future prospects of long term borrowings by hurting the financial capabilities of borrowers on a large scale. The modus operandi of these lending methods definitely snatches away a person’s cash assets in a very short time leaving no scope for positive investments from the individual. All the available cash goes in repayment settlements. Additionally, such concepts encourage the habit of refinancing, multiple borrowings and defaulting in the borrower population. No doubt, the habit of financial predicament is the base of such ideas.

So, in order to stop such lenders from thronging the States and also to introduce hurdles so that people don’t have access to such loans, many States have banned such offerings. This step is anticipated to save the vulnerable borrower population from financial exploitation by lenders who have an eye only on their profits.

The lenders have jolted in their defense claiming that the high rates have been kept to the lowest and are commensurate to the risk and nature of PayDay loans and Cash Advance. Moreover, top notch people from bodies like financial lending associations negate the fact that they have stricter repayment schedules.

They add that PayDay loans and Cash Advances are way cheaper than the cost with reactivations of expired services, penalties with late bill payments and bounced checks. Further assuring the awareness of their high rates, some banks also claim that they try to check the habit of repeatedly taking Cash Advances by limiting the number of such borrowings by a person or by mandating a break of some months before the customer can again use the Cash Advance service.

However, the poverty ridden and despondent situation of people stuck in the problem cycle of Cash Advances or PayDay loans says it all. The practice is hazardous to anyone’s financial health and convalescence is unsure. And if not, then simply knowing that these services make you repay almost double the amount you borrowed enlightens the picture and the fact dawns upon you- any other method of lending except Cash Advances and PayDay loans is cheaper and safer. Maybe the States that forbid the offering of Cash Advances and PayDay loans in their territory realized it soon.

Personal Loans Help Business Owners Cover Cash Flow Challenges

Personal loans can help tide business owners over cash flow challenges. These loans are based on the credit score and are given on the basis of the capacity of the borrower as an individual and not as business. These loans are also quite helpful for small startups, businesses which do not have a proven track record. You can get personal loans at lower rates in such scenarios.

One of the progressive personal lending models ‘peer to peer’ lending has been found to be quite helpful for business owners. This is the method that takes the power of social media to get funding. It is a humane way of getting money and the investors who give money have low risk and higher percentage of profits compared to what they would get if they invested in a regular money-making instrument or bank. You can put your story and state as to why you need the personal loan and there can be many who would like to help.

If you are someone who has a great idea for a business start-up but do not have the funds to see it through, personal loans can help. You often do not need to put any collateral or mortgage your home. Personal loans are issued on your capacity as an individual and what is looked for, is the credit report. If your business does not even show a good track record of profit and you do not have enough documentation that a bank would like to consider a small business loan, the quick disbursal of a personal loan is a pleasant surprise.

To improve your chances to get the loan, you may have to state your personal case and reasons as to why you need the loan. You can tell about your business, how you plan to use the loan, the cash flow challenges etc. Personalization does matter in personal loans, especially in peer to peer lending. You can choose to keep your business idea and things that you deem confidential, as private. It is recommended that you take steps to improve your credit rating and then apply for personal loan. Still considering the competitive nature of personal loans, you may get a good deal in the form of low interest for your business needs.

Putting some amount as deposit can also improve your chances of getting a personal loan. Look for an organization that is able to give your personal loan product that is customized to your way of making repayments. You can also receive tax benefits if you use the personal loan for business use. Please bear in mind that the interest is calculated on a daily basis, meaning the more you pay up, the less interest you have to pay. There may be prepayment fee if you pay ahead of the period. So do not let lack of funds to be an obstacle to your business idea, go ahead and apply for a personal loan for your business needs.

Personal Loan Lenders