Many private lenders are operating in the city of Sharjah. If you face any financial crisis here, it may help to consider a personal loan from private lenders due to the quick processing time. However, most private money lenders operate illegally, and there are high chances you will get entangled in a legal suit with far-reaching consequences.
Before you opt for private money lenders, we encourage you to approach your bank for authentic loans in Sharja. You must, however, be well prepared as banks expose borrowers to rigorous qualification processes. Besides, you will be required to present particular documents to qualify.
We are the experts in money lending and borrowing in Sharja and the entire UAE, and we strive to bring you trusted and verifiable information only. This article has compiled everything you need to know about private money lending in Sharja.
What Are The Advantages Of Turning To A Private Money Lender?
If you do not qualify for a personal loan in Sharjah from legal, financial institutions such as the bank, you may opt to meet your obligations by looking elsewhere.
You get several advantages by turning to a private money lender despite the risks involved.
Fewer RequirementsÂ
Banks require you to fulfill so many requirements. You can get your loan approved without meeting thousands of conditions with private money lenders. You, therefore, get money easily compared to the banks.
Payday LoansÂ
It is much easier to get a payday loan when your paycheck is late and pay your bills to avoid embarrassments such as electricity being cut off in your house.
Emergency LoansÂ
Can help you fix your medical insurance to cover emergencies in the case of salary delays. Besides the application process taking just a few minutes, you can also apply through the lenders’ website and get your loan disbursed faster.
ConvenientÂ
Applying for private loans online makes the process comparatively less time-consuming and more convenient.
Bad Credit Score LoansÂ
With a bad credit score, banks will reject your application immediately. This is not to say that banks are heartless and do not care about your emergency, but they fear that you may not be in a position to repay the loan in time and are therefore not willing to take the risk.
On the other hand, private lenders are willing to take the risk. However, you will be required to apply for a bad credit score loan in this case.
Flexible TermsÂ
Banks have a rigid standard system that you cannot negotiate with the bank officials to change.
On the contrary, private lenders are willing to negotiate their interest rates and even the repayment terms to give you more convenient ways to repay the loan.
Approved Private LendersÂ
There are several approved private money lenders in Sharjah. This has dramatically reduced the chances of fraud and, in effect, makes the transaction safe. In a way, the general public is even more encouraged to consider these options.
Why Should You Avoid Borrowing Money From Private Lenders?
PunishableÂ
The legislation of the country outlaws private lending or borrowing. This makes the act punishable, and both the lender and the borrower can be implicated.
Hidden Charges
There are high chances you will spend more money to acquire a personal loan as many private lenders charge upfront fees even before providing a loan. Besides, they may impose hidden or additional charges on your loan in case of late payment.
High-Interest RatesÂ
Generally, private money lenders in the UAE charge very high-interest rates. Many times, their rates are way much higher than bank rates.
Shorter Loan Tenure
Banks offer more elaborate loan tenures compared to private lenders. For instance, a long-term loan from a bank can be repaid up to 60 months.
While banks allow that, private lenders want their loans to be repaid quickly. As a result, they offer shorter repayment periods.
Threats And AbusesÂ
As much as there are registered private money lenders, some of them are not registered and may engage in unlawful activities. Therefore, some of these lenders may be abusive or even issue threats when you default on your loan.
Confidential DetailsÂ
Some private lenders demand confidential details from lenders, including passports. While it is against the law, some of them will retain your passport until you repay the loan.
Is There An Alternative To Private Money Lending?
You still have good options to explore when you cannot get a personal loan from the bank and consider the disadvantages of getting a loan from private lenders. Here are some of the alternatives to opt for.
Family And Friends
When you cannot get financial help from any other place, a close relative, friend, or even your employer would be a much safer option to consider.
This is because they will be able to give you a loan without going through the long qualification process or demanding documentation.
Besides, you have the freedom to repay a friendly loan as long as you agree. Also, in case you delay the payment, there are fewer chances of harassment or resorting to other illegal means to push you to repay the loan.
Crow Funding
In the current situation, it is effortless to initiate an online crow funding that makes it much easier for you to accumulate small debts from people whose social and economic background you are aware of.
AssetsÂ
Other than family or friendly loans, you have the choice of selling any of your assets to get instant cash to fulfill your emergency.
Why should I check the list of approved private money lenders?Â
Many people have been victims of fraud in Sharjah. Usually, the scam is conducted by criminals who target unsuspecting victims looking for quick cash loans.
The cons, in some cases, even get hold of confidential information of victims and eventually use them to blackmail the victims.
To avoid all these misfortunes, it is vital to check the list of approved private money lenders if you can’t get a bank loan, and the only option is to contact a private lender for a personal loan in Sharjah.
Conclusion
As much as the government recognizes some private lenders in Sharjah, this number is deficient. Work on improving your credit score with banks to avoid private lenders as much as possible. Also, before you reach a point of emergency, it is necessary to plan your savings as early as possible to avoid reckless borrowing.
You can also check out how to get personal loans in other emirates:
Private Money Lenders In Sharjah
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