A lender is an individual, a public group, private group or financial institution that makes funds available to another. There is an expectation that the funds will be repaid in addition to interest and/or fees over an agreed upon set period of time.
Cash is advanced to a borrower for a set period of time at a fixed or variable rate of interest.
As a borrower, it’s important to choose the right lender for your individual needs. Every individual has unique financial needs which can be met adequately by the right lender. While the first thing that comes to most peoples’ minds is finding the cheapest rates possible, it’s important to make sure that you choose the right lender.
How to choose the right lender:
Keep in mind that just because a lender accepts your application, it doesn’t automatically mean that it’s the right deal for you. You need to make sure that you take a number of factors into account before you accept a lender. These factors could include employment, your ability to repay the lender, the rate of interest you will be charged.
Decide whether you need a broker. A broker can save you time by doing a large portion of the work when it comes to finding a lender. By choosing a broker you won’t have to do the work of comparing various lenders.
Make sure that you know what kind of lender you want. If you need a personal loan and you have a bad credit record, chances are that applying for a bank loan may not yield the results you want. If you need to pay for tertiary education costs, a student loan may be the best option. Be clear about how you want to use the loan.
Do thorough research about the lender’s reputation. Ask family and friends for their opinions and check for complaints and compliments online.
