Whenever we think about loans and finance industry in the UK, we tend to focus on relevant propositions, the loan amounts, eligibility and rates of interest. The four are indeed the most important factors. Eligibility is quintessentially relevant, the type of loan is a precursor to everything, the loan amount will make it suitable and the rate of interest will make a loan more favourable than other options. But beyond these, there’s more to loans and finance industry in the UK.
Let us explore some of the very important aspects of any loan, be it a home loan or a payday loan.
You must know the process of application, approval and repayment, all the policies governing these phases and if they would suit your needs. Let us consider payday loans. There are some that get approved in a day, some get approved in an hour and some may take five business days to be processed. Not all would suit your needs given the demand of the hour. You may be able to wait for a week or you may need the cash right now. Hence, the processes involved in applying for a loan, getting approved and having the loan amount credited into your account will influence your choices.
The paperwork needed is often considered at the outset. Lenders allot varying degrees of importance to different kinds of details about your profile. Some lenders will be happy enough with your income while some would try to decipher if the source of your income is stable or predictable enough. It is just how the lenders assess their risks. This is beyond your control. It is these elements of loans and finance industry in the UK that must also be looked into. For a lender that doesn’t want to take risks with self employed people or freelancers will not entertain your application if you are one. Right there you have some lenders suitable for your profile and some that wouldn’t regard you as an ideal borrower.
You must be aware of the additional fees or charges you have to pay. Some lenders are upfront with their disclosures while some prefer to conceal a few charges. It is only when you get the paperwork or pay the fees that you realise you have chosen a wrong deal. There are companies that misrepresent their loan offers.
You must also focus on how the lenders treat their customers. Right from the first phone call to the disbursal of the loan amount, from interacting with collections to possible future associations, every experience will be influenced by the quality of customer service. If you find out that some lenders are horrible at their customer service or fail to address customer grievances, then you should try to avoid their products. It is likely you would have the same problems. Focusing only on the rates and amounts of loans and finance industry in the UK would be a stunted assessment of the options. Develop a holistic understanding of how everything works.