Getting a Loan Without a Bank Account – Is This Possible?

Peer to peer lending has expanded in recognition in recent years. As credit markets have stiffened and interest rates have continued to fall, peer to peer lending has unlocked doors for both lenders and borrowers that might not have been there otherwise. Peer to peer lending organizes strangers with similar goals-to borrow or lend at better rates and conditions than traditional institutions might have to offer.

Borrowers usually receive loans with competitive or possibly lower rates than they would from traditional banks or credit cards, while investors often get higher returns than they could from traditional bank products such as CD’s. But tight underwriting standards have pushed consumers out of the traditional lending system and sent them researching for alternatives. In a survey of micro lenders 81 percent stated that requests for those small-dollar loans increased during the last 3 months compared to the previous year.

The advantages of peer to peer lending are several. A borrower has nearly an unlimited pool of loans to choose from with many interest rate ranges. These types of lending appeals to lenders personally and perhaps get loans that they would not qualify for at a traditional financial institution. One of the greatest advantages to using peer-to-peer lending is that even those people who have been rejected by traditional banks can get a loan. Borrowers often see lower rates on short term debt than the high rates credit cards typically charge.

The disadvantages of peer to peer lending are tied in to the risk factor for would be lenders. For borrowers, the disadvantages are borrowing from the unknown and an unregulated institution. The disadvantage for the lender is there is no guarantee that the borrower will repay their loan, an important risk factor since the borrower may have been rejected by traditional sources.

Nearly 60% of the loans have gone to individuals wanting to consolidate credit card debt, possibly buy a car, clear up medical bills, and even finance education. The number of loan requests by would-be borrowers shows the demand for these types of unsecured, fully amortized loans over a fixed period of a few years, and so far there has been a steady supply from willing lenders. Whether you’re looking to consolidate debt, land a home improvement loan, or get extra money for an engagement ring or wedding, all loans are unsecured-which means no collateral required. Lending communities offer a last chance loan to consolidate high-interest credit card debt or just can’t get a loan anywhere else.

It provides borrowers an easy and convenient way of securing a loan at lower rates than banks. The process goes quite quickly and it’s very easy to get everything set up. If you are interested in this you should look around for these types of loans. They may be perfect for you in your needs are short term and relatively small loan.