It is often said that when it rains, it pours. This is very true considering that when you are going through financial struggles, it becomes almost impossible to get a loan. Financial problems bring with them anxiety, confusion and a feeling of desperation. The fact that more and more than half of UK residents are dependent on the government as reported in the Telegraph makes the situation even worse. Very few people are willing to co-sign a loan for a person on benefits and so traditional lenders avoid you like a plague because they view you as too risky to lend to.
However, you can now rest easy as there are innumerable direct lenders that provide loans on benefits no guarantor. These lenders take a more lenient view of your financial situation and agree to take on the risk of lending to people in a situation just like yourself. Additionally, their application process is done entirely through the internet, it is fast and their decision comes almost instantly. As a borrower, you get the chance to choose between different lenders and to go with the lender that offers you the best repayment terms and interest rates. Some other benefits include;
General Benefits of Using Direct Lenders for Loans on Benefits no Guarantor
Each direct lender offers different benefits but in general, here are some of the benefits you can expect.
Quick and Straightforward Application process
Traditional lenders impose a long and tedious loan application process that can take days to complete without any guarantee that you will be approved. They also require collateral and a flurry of documents which makes the process extremely frustrating. Direct lenders, on the other hand, have a simple, mostly online application process that takes just a matter of minutes to complete. The process only requires you to fill out a single online form with correct and complete personal details which are then verified by the lender for approval.
Immediate Access to Funds
Once the lender verifies your details, they will often give a decision on your application almost immediately with a high chance of getting approved. It is important to note that the lender does not offer automatic approval as situations differ from one borrower to another. Once you are approved and agree with all the terms of repayment, the funds are deposited in your bank account in just a few hours. For a person that was in an emergency, this is very helpful.
You do not need a Guarantor
For most people in the UK living on government benefits, it is almost impossible to get a guarantor. Very few people would be willing to co-sign for a person with no reliable source of income. The view is that a simple policy change can cut off your source of funds. Lenders of loans on benefits with no guarantor recognise this fact and accept to take up the risk. However, it is important to ensure that you can repay the loan in time so as to avoid getting into more financial problems.
Are there any Downsides?
Direct lenders offering loans on benefits with no guarantor offer many people who would otherwise have no chance of getting emergency financing an opportunity to quickly and easily get a loan. These lenders accept to take on the risk of lending to people that traditional lenders would not consider as they are perceived as risky. As a consequence, these direct lenders will typically charge a higher interest rate to compensate for the additional risk. However, by comparing different lenders, you can get fair interest rates as well as favourable repayment terms. Additionally, these lenders typically do not charge an application fee which reduces the overall cost of the loan to the borrower.
So, what’s next?
Using direct lenders to get loans on benefits no guarantors when you have some small urgent need for cash can be a life saviour. With all the benefits listed above, they offer a convenient and quick way to get the money you need to sort out an emergency situation. The only challenge is on finding the right lender. This is where we step in. At Bonsai Finance, we are committed to connecting people to the right lenders that will understand their needs and offer loans under the most favourable terms. Talk to us today and let us help you find the right lender for you.