Everything You Need to Know About Private Financer in Delhi

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In an emergency need for money, personal loan is preferred by most of the people as there are no other options to obtain money in such little time.

Now in India there are a lot of options from where you can get a personal loan.

1. The private banks, public banks and cooperative banks can help you in such situations.

2. Friend-to-friend loans.

3. Loans against securities like LIC policy, property, any kind of fixed deposit or credit card.

The private financer in Delhi are mostly the non-banking entities. They can be traders or non-traders or any other entity who has the capability of offering loan. Some of these entities manage to get license from the government but others operate illegally.

Advantages of Private Financing

No checking for credit history

If you apply to a bank for personal loan, the first thing they will take into consideration is your credit history. Now there's a pretty good chance your credit history might not match with the bank's requirements. Some don't even hold a credit card. Due to such reasons most of the applications get rejected.

Quick issue of cash

Although some banks claim 'loan in two minutes', they take a long time in issuing your money. Instead private financers issue issue the loan very quickly.

Lesser need for documentation

You might already know how many paperworks you are required to go through or fill up while applying for a loan. But if you are getting from a private financer it is hassle-free. Every private financer in Delhi is very easy about it.

Disadvantages of Private Financing

There are many disadvantages surrounding the private financings.

1. High interest rate

One of the largest drawbacks is the interest rate you are charged with. Although you can bargain for it, but generally it starts from 20% and can go upto 45% depending on the amount of loan and the term for repaying. As there is no monitoring authority, the lenders set whatever rules they want as per their choice.

2. Repayment period

The payment can be asked daily, weekly or monthly, which can turn out to be problem for service men.

3. Process of recovery

The recovery process sometimes turns out to be a nightmare. The lenders even hire recovery agents for the process. They blackmail you, harass you and apply every means to recover the money. Mostly the lenders take illegal possession of properties or personal expensive belongings like gold.

4. Forged documents

This concept is not alien anymore. Everyone is aware how much forgery takes place in such businesses. The unauthorized companies or lenders forge the important documents like blank stamp paper, and take signatures on the duplicate receipts and cheque. They deceptively transfer the property to their own names.

If there is no way left to borrow money from friends or family members, you can seek the help of private lenders. It is important to find lenders who are authorized under government. It is necessary for every money lender to get license from the state government.