- August 10, 2019
In today’s digital age we all have accustomed to living for our financial lives online. From looking for a loan to applying for a credit card, we are more likely to tap everything on a computer and set up automatic repayments rather than making face to face contact with the lenders. However, this is not the only way to manage your money, as a doorstep loans provides a more personal way of finance, the old fashion method to borrow money.
If you need to borrow a small amount of money for a shorter duration then you might automatically think about payday loans. But if you want to repay the loan over a long period of time and don’t have a bank account then a payday loan will not be a suitable choice for you. Perhaps, a home collected loan, more commonly known as a doorstep loan, would be very suitable for you. The basic thing about this type of loan is that it has been in practice some 100+ year before.
About Doorstep Loans
Normally, you apply online for a doorstep loan but that is the only part of the procedure that doesn’t take place face to face. After you send the application an appointment is arranged so that an executive can visit your home to explain to you the various options available and for the money providers to make some further inquiry.
There is no obligation at this juncture and all good doorstep loan executive will simply make you through the options available and answer your questions about terms and conditions.
Once the terms and conditions have been agreed between the agent and applicant then the loan is handed over in cash. There is no need to complete the transaction through a bank account and repayments can be collected at home too, with the executive visiting to collect the payment.
How Much You Can Borrow?
Just like any other type of loans, the choices available through doorstep loans depend on your situation. Generally, home collected loans are available for funds between 100 pounds to 2500 pounds and different interest rates apply depending on the terms and conditions agreed, all of which discussed during the earlier meeting with the agent.
Repayment duration varies similar to other types of loans- opt for a shorter period such as 14 weeks, to repay the loan in faster instalment, or for a longer period – such as 52 weeks – to pay back the money in smaller and more manageable chunks.
Who Can Borrow?
Anyone can borrow this type of loans for their financial needs. Doorstep loans are especially suitable for people who don’t have a bank account or who don’t want to use a bank account. Anyone who can’t go to a bank. Those who don’t want to deal with direct debit and automated money transaction or when there is mistrust in the mainstream banking system.
Anyone who is not holding a bank account and doesn’t want to be forced to open a bank account to get the financial help will find the doorstep loans very useful and this type of loans also has an advantage for people who have a bad credit score.
It doesn’t matter for the lender whether you have a bad credit record or good credit record, they are willing to provide loan regardless of your credit score.
Also, to get this type of loan, you don’t have to provide any security or collateral. No guarantor or co-signer is required to avail this type of loan.
How It is Different from Other Loans
The major difference is the convenience of the home collected repayments, which is an easy alternative in spite of going to a bank to make payments or setting them up automatically.
Repayments are made on a weekly basis, which can be very simple to manage, as they are simply divided into the weekly budget. The loan has to be repaid just like any other loan and there will be a penalty if the money is taken and not repaid on time. However, there is no late payment charge if the payment is delayed. Payments are being tracked using a personal payment book, which is an easy way to keep a watch what has been repaid and what is left.
A doorstep loan lender has a huge number of trained executives and one of the most attractive features of this type of finance is that there is no third person involved. Many of you have a concern about bank fraud, digital hacking, and the lack of transparency in the banking system and none of these is applicable in the case of a doorstep loan, as the payments and repayments all are made in cash.
There is no need to worry about payment going somewhere else because they are collected and paid in person and payment is recorded in a personal payment book. If direct debits and standing orders- or any other type of automatic payment that is taken without your consent- worry you the doorstep loan is a great finance option.
Doorstep loans have a lot of benefits from easy to manage repayments to flexible borrowing. However, the biggest advantage for many borrowers is the opportunity to manage to borrow with face to face contact, without going into the hassle of big banks and financial institutions.
The good thing about a doorstep loan is that you deal with real people and the people you can believe. Though you have to make your initial inquiry online, after that you have to discuss with real people.