Any person can face obstacles in this indefinite life in the form of unemployment or disability. A person, who is living in a remote area, can also face problems like no access to the bank account at the early age and this is why failing to get the loan. Some people might not be comfortable to come themselves to the lender, because they do not have enough time and money to reach to the lender due to some constraints. Such people are generally restricted from getting loans through the mainstream lending institutions or many other financial institutions.
Here, home credit loans or doorstep loans with the FinTech support are useful. It is because these are available under both short term and long term and at the same time under the secured and unsecured category, which is helpful for every individual to acquire a loan, even if he is not employed, disabled or does not have any access to the bank account.
How can one call a doorstep loan a flexible loan product?
The doorstep loans are flexible when provided by some online lenders, who are working above than their risk because they do not follow the conventional approach of lending rather approve the loans on the easy terms and conditions like no credit check, no requirement of guarantor, no interference of a broker and the repayment period of such loans are flexible.
The flexible repayment period is there because sometimes the borrowers delay the payback of money due to the delay in the salary from the end of the employer. This can be counted as a reason to call doorstep loans flexible and other than this, the policies of the loans can be customised with the help of some lending companies, which are lending money to credit defaulters or unemployed people on their risks.
Few direct lending companies provide such loans on the flexible terms and conditions and these belong to the FinTech Companies category.
Can bad credit scorers apply for doorstep loans and how?
Yes, the bad credit scorers can also get doorstep loans from the direct lending companies or FinTech based companies by opting for unsecured loans, in case they do not have any collateral and they need small principal money as loan. In case, they need higher amount of loan, than they are required to deposit any collateral like property or vehicle to the lender, as per the cost of the loan.
Procedure to Get Doorstep Loans
At the first, the borrower is required to fill an online application form on the website of the lender and then submit it to the lender.
Alert: A rational borrower is always suggested to do enough research on the lender to know its eligibility criteria and legitimacy. An immature borrower is suggested to apply under the supervision of his seniors, who have enough knowledge about it to guide him or her towards the right financial policy.
After submitting the loan application to the lender, now it is the duty of the lender to consider the loan application and to inform the borrower about the consideration and fix a meeting with borrower regarding knowing more details, confirming the current details or approving the loan. A financial representative then come himself to the lender and approve the loan.
Even if a person wants to pay back the loan through the financial representative, he can fix the date of the repayment and the concerned person of the lender will collect the money.
Are doorstep loans cheaper or expensive?
The doorstep loans are expensive, as the financial agents of the company come themselves to the borrowers for collecting information and repayments also. The doorstep loans are highly risky if applied under the unsecured loans. The lender does not have any other sword to protect its repayment, so it raises the interest rates and get back its values.
The Bottom Line:
Avail doorstep loans from a responsible loan lender only if you have emergency need of the funds, otherwise ignore debt financing.