With consumerism on the rise, lenders are now finding new means to reach more borrowers. They penetrated the general market by introducing new types of loans and debt instruments. One loan may be similar to others – only differing by the way they are marketed. One of the timeless loans that you should know about is a character loan. It’s very similar to a personal loan, albeit with lesser parameters.
Here are the modern advantages of getting a character loan:
Variable Approval Rates Depending on Character
Character loans are known for their variable approval rates. If you have a bankable character, the money lender may approve your loan with minimal difficulty. This is common in small towns and communities where lenders don’t have strict systems and people tend to know each other well. If you’re new in the community, you definitely need someone to vouch for you. Also, don’t expect for high amounts immediately. Community lenders, after all, need to manage their risks so their business will survive.
Huge Amounts for Bankable Characters
If you’re certain that you’d pass any character check, then lenders will trust you more with a higher amount. But this is not always the case; sometimes, it will depend on your reason. Emergency situations will trigger the empathy of the lender, and you can get a better chance at loan approval. More importantly, if the lender realizes that you’re a good payer, you can get definitely get huge amounts.
Acceptable Interest Rates
Character loans boast small interest rates and quick approval processes. This is why character loans are often linked to microfinance groups, local banks, and small-town credit cooperatives. As a benchmark, you can expect for about 5% interest rate per month. The rates can even go lower than that, provided you’re really a trusted borrower. In a community, if there are multiple lenders, they have to keep their rates competitive. Otherwise, they’ll lose customers. In order to find the best character loan lender in your area, you can try asking local shopkeepers. Facebook can also help since it speeds up the way people communicate.
Even though character loans have many advantages, you still need to be wary. Some lenders may try to jack up interest rates without your consent, while others may put hidden fees. Before applying for a character loan, you should have a list of the most trustworthy lenders in your area. This way, you can make a decision that you won’t ever regret.17