Due to the scaling borrower demand in the global lending industry, lenders became more competitive tried to offer different kinds of loans. Nowadays, you’ll see many personal loans with various amounts and terms. Aside from personal loans, character loans are also becoming more popular and feasible. What is character loan and why should you be interested? Well, a character loan is a type of unsecured loan based on your character. You’ll see this type of loan often in rural areas and provinces where communities are tightly knit.
A character loan can be advantageous for you, especially if you need money quickly. Here are some of the reasons why a character loan is beneficial:
Exceptional Approval Rates
Just like other kinds of unsecured loans, character loans are known for their high approval rates. Whenever you approach a character loan lender, your personal background will be assessed through different checks and balances. In small communities, you’ll see the importance of referrals and word-of-mouth. If you’re backed up by an influencer in the community, there’s a greater chance that your loan will be pre-approved. For city-based character loan lenders, your social media profile can be one of the main factors. So, you should consider doing a little bit of ‘house cleaning’ if you want the lender to approve your application. Character loan lenders tend to veer away from over-spenders and incessant party goers.
A Good Character Can Pay Off
There are some instances when a character loan lender offers huge amount ceiling for people with ‘really good’ character backgrounds. These people are probably community influencers, outreach volunteers, hardworking professionals, or residents with a great sense of integrity. In this case, a good character pays off. If you’re new in the town, you may have a slight difficulty getting approved for character loans – unless someone vouches for you. For city-based character lenders, your background can be measured by the way you present yourself, your social media profile, credit status, government documents, and the reasons behind your application.
Manageable Interest Rates
The microfinance industry is filled with different character loan programs.
This simply means that the interest rates are moderately low, with some loans reaching only 10% interest per month. If lenders can increase or decreased your amount ceiling based on your character, the same thing can be done with interest rates. According to several studies, character loan lenders will issue lower interest for reputable people in the community. Strangers or visitors will be given a higher rate, though this can be contested. Another noticeable trend is competitive adjustment. Character loan lenders adjust their rates upon realizing that competition is a bit tough.
Even though most character loans can be advantageous, you should still be vigilant. Pick your lender wisely so that there’ll be no regrets down the road. For more information, you can do a quick web search about the best character loan lenders within your area.