Choosing a money lender whose head office or branch offices resides nearest to your house is always a privilege, especially if you are a senior citizen. This gives you the convenience of visiting their office whenever you need. Also, some branches provide free doorstep service to their customers if the client’s home is nearby.

If the money lender’s office is nearby, you can visit their office multiple times to collect necessary information and check every minute detail before taking money from them. Today, in this article, we will discuss in detail about licensed moneylender. Also, we will try to know what things should be kept in mind before choosing a Money lender near me or your home.

Things to know before choosing Money Lender Near Me –

Interest Rates –

The first thing we must check before taking money from any money lender should be their offered interest rate for the repayment of such loan. Some company lends money at low interest rates while other claims a higher percentage for the same amount of loan. Still there are others in the market whose interest rate percentage is medium. You should choose the money lender whose interest rates are competitive in the market and are affordable for you.

But, in most cases, the loan-seeker only checks the interest rate and proceed. It would not be the correct decision on your part. Before moving forward with the final loan from a company, you should take into account the number of years they offer for the repayment of your loan along with interest.

Understand Eligibility –

Most money lending company, whether it is a small or big or some other institution has their own criteria for deciding the approval of loan for a loan-seeker. You should meet those criteria’s before applying loan before them. And, to meet those criteria, you need to first understand them. So, before applying a secure loan from authorized local money lenders or financial institution, first visit their office or call their customer support and know their detailed criteria for the loan.

Tell them what type of loan you need and your age and all. They will tell you if you are eligible for such loan as per your age. Also, know from them whether they provide loan to any person including the self employed ones or have their own policy for lending money to only those with fixed incomes or doing any fixed jobs.

Documentation –

Different companies require different documents from the loan seeker. You need to understand what kind of documents you need to arrange and submit to get a loan from the company you choose.

Knowing all these things before filling up the loan-related application is vital. Otherwise, there remains the chance that your application may not be approved. Some of the documents that the financial institution usually asks for from the person looking for loan are:-

•    Identity card.

•    Residential address proof.

•    Bank statement of recent few months.

•    Your latest income-related statements from office.

•    Employment proof, etc.

Check for any Hidden Charges –

Low interest rate for any loan sounds quite beneficial. But you must not forget that the interest is not the only thing you have to pay. Sometimes, many hidden charges also remain attached. It is important that before filling the form for the loan of money and signing it, you read all the terms and conditions associated with the money lending. Skipping even any minute thing may lead to heavy consequence later for the same. Some of the hidden charges the money lending companies usually charge are:-

• Processing fees.
• Prepayment charges.
• Late payment fees.
• Personal loan-related charges, etc.

Consider the Time of Approval –

Some people want urgent loans and immediate sanction of such loans. While there are certain other persons whose loan requirement is not that urgent and they will face no problem if the loan sanction takes some time. Analyze, in which category you belong. Choose your Money Lender Near me or near you’re is best. Some company’s offers instant approval of loan while others may take some time before finally saying yes.

Check Customer Reviews and Verify company licenses –

Before choosing any company, look at the reviews and ratings of that company. Also, carefully see if there are any customer complaints about the institution. If yes, try to know the reason behind the same. You may also ask about the money lending company to your close ones or acquaintances.

After doing all these researches, take your decision wisely. Remember, taking secure loans from authorized local money lenders must be your ultimate goal related to money lending. One should take money as loan from a Licensed moneylender institution with verified license only to avoid any future complication. So, before taking loan from a company, don’t forget to check it’s license to verify it’s authenticity. The company must be government approved.

Avoid loan sharks –

Suppose you are not getting money from best institution due to some reason and got offer of money from some bad loan sharks. They charges high rates of interest in exchange of their money lending. Suppose you are facing lenders who put a condition that if you take a loan from them and fail to repay it, they will take possession of your property, along with paying high interest. What will you do?

Completely reject such offers! Loan sharks are dangerous. Most of all, they will put a lot of pressure on you if you fail to repay their loan on time. If you fail to repay the loan even by a few days or months, you can lose a lot of your wealth to them.

Face-to-Face verification –

Some remote company’s claims to give you loan at a low interest rate if you apply online at their website. Since, the branch is not located near your area, you may fall for it and may apply online for the same. Here’s where you may fall a prey to their trick. There are a lot of scammers who scams you trickily in the name of charging you low interest.

They may lure you into a trap and extort money from you in the name of interest or additional hidden charges on the loan. Visit the local branches or head office of the company and satisfy your curiosity before going ahead with the loan.

Conclusion –

Before choosing a company, apart from the competitiveness of the interest rates, you should also take into account its years of service, customer support service and reputation. Also, ask them if they have any rules for lending money to a person whose income is above a certain level or anyone with any level of income is eligible for the loan. You should select a licensed moneylender only after verification.

Also Read: Exploring What is a Business Loan and How Business Loan Interest Rates Work