Short-term loans in the Irish marketplace dominate long-term loans. What would be the primary reason? Of course, it is their easy accessibility. Loans for longer duration involve cumbersome procedures because they are for heavier amounts. On the other hand, short-term loans are available in varied forms and suits, particularly during financial emergencies.
Another feature of short-term loans in Ireland is their variety. One can find plenty of options like quick loans, small loans, no guarantor loans, bad credit loans and many more. Still, one short-term loan option includes a zenith of convenience. I am talking about doorstep loans.
Yes, these are cash loans where the lender sends its representative to the applicant’s home to process the loan and sometimes disburse the amount hand to hand. The same person visits regularly to borrowers’ doorsteps to collect the repayments. Therefore, the comfort of getting and repaying funds is what doorstep loans ensure for loan aspirants.
Another essential thing, such as doorstep cash loans, is the lender’s role. You rarely find these loans from mainstream lenders like banks. If they offer, then the interest rates will be on the higher side. It is the reason why many financial experts believe that direct lenders or online loan companies are more suitable to get this small funding. They are flexible in approach and modify lending terms according to individual affordability.
In this blog, we will focus our discussion on the lender’s role in offering doorstep loans and what facilities they usually offer.
Direct lenders’ facilities and doorstep loans
Doorstep loans may be for very small amounts but are extremely useful during the intense needs of funds. These are helpful while fulfilling the small funding requirements and filling the funding gap during the more significant purchase. Still, you can get these loans on favourable terms if you have applied from a trustworthy loan provider.
Let us discuss more on the facilities that direct lenders offer on such doorstep cash loans:-
- Having a bank account is not mandatory: Only doorstep loans are available as the funding source, whereas having a bank account is not compulsory. It is an extremely useful option for those who need quick funds but have not yet opened their bank account. For instance, housemakers or students can explore this option more conveniently.
There is another benefit of this facility. You do not need to make extra efforts for loan repayments. As mentioned above, the lender’s representative visits your home to collect the repayment. For this, you do not need to have a bank account. All this can happen just because the borrowing amount is allowed to be small, for instance, a maximum of up to €800.
- Credit score is one of the criteria, not the only one: There is another significant facility direct lenders bring on doorstep loans. I am indicating your credit score. After researching the Irish loan market, it has been found that most of the loan queries for these small loans come from those with poor credit scores. They are restricted from getting long-term loans like mortgage loans, business loans or car loans. Still, they have a borrowing chance despite having a poor credit history.
The online loan companies insist on your monthly earnings and the affordability of loan repayment rather than your past credit history. If you have improved recently in proper bill payments, lenders can even treat your loan application with no credit check.
- Perhaps the best option during unemployment: Not many loan options are available for the unemployed. The lack of full-time and stable income is a significant factor in loan acceptance or denial. The mainstream lenders have proved too strict on them and consider such individuals risky borrowers.
On the other hand, direct lenders seem flexible and consider jobless individuals while approving loan applications. It becomes possible due to their offerings, like doorstep loans for the unemployed. In such loan offers, you get the approval on part-time income or unemployment benefits that you are receiving from the government. Interest rates will remain competitive because these will be affordable loans.
- No chance of missing repayments: You have a poor credit score because you have not paid all payments on time, including your previous loans. I can understand that some circumstances would be there. Still, lenders see loan applications of those with bad credit histories with a lot of doubts. In contrast, direct lenders give the facility of home collection of repayments.
The lenders send their representatives to the applicant’s home to collect the repayment. It has two benefits. First, you will not miss even a single loan instalment. Second, you can improve your credit score by repaying loans on time. However, if you have difficulty repaying, informing your lender well before the due date would be better.
- No restrictions on loan amount usage: Just like a personal loan, you have the advantage of using the borrowed amount for any of your financial purposes. It is true that you are not going to use the amount for larger purchases, as these are only for smaller financial expenses. You can apply for these cash loans if you need to install security devices at your home, purchase utensils, do minor kitchen renovations, pay college fees, etc.
Furthermore, the lender always expects you to use the amount for genuine purposes, not illegal activities. Keeping a good rapport with the lenders is also suitable for your future borrowing opportunities. You may need more funds later to fulfil another financial goal.
Let us end our discussion
Now, you can see that many facilities will be there if you opt for doorstep loans from direct lenders. Most loan providers are flexible in their lending practices and finalise the rates according to individual affordability. At the same time, it becomes the responsibility of the loan applicants to apply most sincerely.
Any kind of mistake can ruin your loan chances because the lender can guarantee 100% loan acceptance. For this, you need to be sure about your loan affordability and keep the strength of your monthly income, irrespective of full-time or part-time.
I hope you have enjoyed the discussion here, and I await your comments on this.