With the recession causing innumerable people to lose their source of income and profits taking a downturn, the financial crisis has become a story of almost every household nowadays. However, as expenses remain unchanged, it often happens that people fall in urgent need for money when some emergency or unexpected expenses arise.
Pros of online loan sharks
When you do not have any regular source of income , getting loans from traditional sources such as banks becomes difficult. Many people also have bad credit history that dissuades lenders even more in giving them an approval for the loan.
Not to forget, borrowers also need not provide any collateral that may be confiscated by the lender if the borrower fails to pay the loan amount in the stipulated period of time. However, many times it happens that even when borrower can put any property as collateral and gain easy approval from banks, they still prefer to go by the route of loan sharks online. The reason is the quick approval process with minimum legal formalities involved and no need to visit the bank for several times.
As a result, loan sharks emerge as saviors for these people who are in dire need for money but no way to provide assurance to lenders about their guarantee to pay back the loan.
The best abode of loan sharks nowadays is the Internet. They are no longer confined to poverty-stricken areas or back alleys. With quick approval rates and the Internet contributing to the speed of approvals even more as well as convenience of customers to apply from the comfort of their homes, there is nothing surprising to see thousands of people searching for loan sharks online.
Hence, expedience in loan approval and poor credit history are two most common reasons that cause people to seek financial assistance from these alternative lenders.
Cons of online loan sharks
So, for anyone who wishes to have a short-term unsecured loan within a few minutes or hours and bad credit report, loan sharks online are definitely a great option. Though loan sharks are surely not bed of roses for all and have some thorns attached to it. The catch lies in the extremely high interest rates at which these loans are extended. Honestly, provided at high risk to people with bad credit history, no collateral and minimum legal formalities, it seems fair enough to charge that exorbitant rates of interest by loan sharks.
Another thing that must be taken care of is that you must deal with legal loan sharks. You may find several loan sharks online who are ready to extend loans to vulnerable people like you but may resort to abusive techniques or even physical assault to recover their loan amount in future. To avoid dealing with such lenders, it is best to look for review of previous customers of the loan shark you are about to deal with or check their terms and conditions before you deal with them.