Getting a personal loan can feel more ominous to borrowers with bad credit. The same can be said of borrowers that simply lack credit history. There are plenty of loans available to US borrowers that have APRs exceeding 300%. For borrowers who understand this, getting a fair loan can feel like an uphill battle.
Many people don’t fully understand the costs of their loans and end up surprised by sky-high repayment requirements. So, how can someone filter out the prohibitively expensive loans?
Loan aggregators can help with some of these issues. This article will cover how LoansUnder36 can simplify the lending marketplace while ensuring borrowers don’t get stuck with APRs over 35.99%.
Simplified Collection of Data
Finding the “right loan for you” requires some information. Credit score, debt-to-income ratio, and other factors determine which lenders are willing to give you which terms.
To make matters simple, LoansUnder36 streamlines the process with a comprehensive yet simple form. The standard form is simple and intuitive enough to quickly provide the answers that lenders are looking for.
Single, simplified application processes can make anything easier. LoansUnder36 offers a simple online form that can be used to quickly assess borrowers for which kinds of loans are suitable for them. Then, they can be matched with loans with APRs ranging from 5.99% to 35.99%. No one can be directed to a 36% or higher APR personal loan.
Providing Multiple Repayment Options
Repayment terms can be one of the more challenging aspects of handling a personal loan. Some lenders may address these concerns with some back-and-forth. LoansUnder36 makes this step much simpler by integrating various possibilities into repayment terms.
LoansUnder36 gets borrowers repayment terms ranging from 60 days to 72 months. All borrowers can choose between a monthly or bi-monthly repayment schedule. Borrowers have the choice of choosing between any of the loan products available to them. The availability of each loan is determined by the simple form that borrowers fill out first.
LoansUnder36 is not a lender itself. They do not decide whether you are qualified for a loan. What they offer you is loan aggregation.
Loan aggregators are a kind of intermediary. They are platforms that sort the lending marketplace for customers. They offer quick comparisons and take advantage of technological solutions to ensure they can constantly match borrowers with the best loans for them.
There are a few key benefits to using a loan aggregator instead of individually comparing lenders.
First, they are simple. In addition to the simple data collection we covered, aggregators take the guesswork out of the lending process. You don’t need to do any comparative work. You don’t even need to shortlist lenders for yourself.
Loan aggregators present borrowers with the personal loan options they are eligible for. You can also set your own requirements for what kinds of loans you would accept. For example, you could specify certain loan terms.
After lining different lenders up, you can compare their individual APRs and other aspects of each loan.
Fast dispersal is also one of the main benefits of loan aggregators. They make pre-approval easy, and because they know your financial situation it takes less time to qualify. Most loan aggregators make it possible to receive the funds in under 72 hours.
As intermediaries, loan aggregators also offer support. Borrowers can refer to the aggregator’s customer service department if they have questions or concerns.
In general, borrowers have a lot of work to do if they want to get the best personal loan. That responsibility is the same whether they get a loan directly or go through a third-party platform. However, loan aggregators make much of that work simpler and faster.
If you use LoansUnder36, you have the same responsibilities and get many of the same benefits. However, their dedication to simplicity (for the borrower) and reasonable APRs make them even better to work with. That way, you can be sure that you’re presented with loans with reasonable costs and repayment terms that you are comfortable with.
The 36% Cap
High-interest loans are a serious issue in the US. Sometimes, people don’t understand the implications of their paperwork when they sign loan documents. There are many individual stories of personal loans surprising borrowers. In many states, there are only very limited regulations in place. Some kinds of loans, particularly payday loans, can have APRs ranging from 300% to 1,000%.
LoansUnder36 has a unique new solution to these issues. The idea of capping off loans at 36% isn’t new. It’s a rate for loans that have been reaffirmed at the state level in 15 states. It is also considered the maximum rate that gives borrowers a reasonable chance of being able to pay it back.
As regulators are faced with the challenges of the loan industry, the 36% cap’s historical relevance is clear. The 36% cap emerged early in the 20th century thanks to the Russel Sage Foundation. During the Progressive Era, 34 states adopted some iteration of the Uniform Small Loan Law, limiting APRs to 36% to 42%.
The context behind Progressive Era APR limits is much the same as it is today. Back then, “salary loans” were increasingly common. Some borrowers took loans costing 4 digit percentage figures on the logic that they could be paid back at payday, similarly to modern payday lenders.
The 1970s and 1980 saw deregulation across the lending industry in the US. However, many jurisdictions appreciate the logic and ethics of the 36% rate cap, and 35 jurisdictions currently enforce that same cap or lower.
No one can promise any specific changes to regulation in the future. The regulatory landscape is shifting, and the 36% rate cap will likely be further embraced once again. In the meantime, borrowers can still benefit from some kind of control in the lending market.
This is what LoansUnder36 offers borrowers today. They offer loan aggregation services, but with an added and much-needed cap to make sure lending is fair to both lenders and borrowers.