March 14, 2020
You know, there are many instances of people who gave up their cosy and good paying job for the want of starting their own operations. But, being a self employed person gives them the thrill of being able to work on projects from start to finish. And also, it definitely helps them in making full use of their skills. The lenders however do not think of themselves as being employed worthy enough to even qualify for their loans. And the regular loans require a systematic payment from the borrower’s side. Self employed people, with an unsteady incidence of income are deemed incapable of making regular payments.
The reason behind the money lenders refusal to the self employed people is in no way motivated by the concern for safety of the amount that they lent. Lenders are well aware of the high paying potential that self employed people can offer. And also, they know it is for this reason that a large number of loan providers have come up with special kind of loan deals for the self employed people. These loans are known as self employed loans and they are built in a form as to incorporate the great features of the self employed people.
If you are trying to find a way by which self employed borrowers can make payments towards the self employed loans and also not be tied to fixed obligations, that the loan providers hit upon the flexible method of payment. And we all know, under a flexible method of payment, the loan provider does not tie the borrowers to a very tight payment structure. Because, the borrower has the option to pay as much as he wants against the loan taken. And the months when profits see a high, payment too can be made of a higher amount. The higher payment will provide for the times when profit from operations is not as high. Because, these are the times when underpayment on account of self employed loan can be made. The payment is left for the borrower to decide. He can decide the payment according to his state of financial affairs.
And also, you know, payment holidays form another important feature of self employed loans. A payment holiday is when borrowers take complete off from making payments. This is when borrowers’ finances see a bad turn or when the borrower has other important expenses to make. Borrower must discuss his financial situation and the reasons behind the payment holiday with the loan provider before payment holiday is approved. And also. if you need a loan after bankruptcy the associates home loan of florida knows everything you need to know and do in order to secure loans after bankruptcies.
Do you think the money lenders would have accepted the repayment structure in this manner in a regular loan? No! Most loan providers expressly prohibit overpayments or underpayments stating that such moulding of the repayment structure of a regular loan would increase the number of calculations that they have to make. Thus the borrowers of regular personal loans have to make fixed payments whatever be their financial status.
And you know, that the self employed loans are also beneficial for borrowers who have experienced bad credit history in the near future. Through self employed loans, such entrepreneurs can raise the necessary finance easily. And any regular loan lender would have fussed a lot on the bad credit history and would have raised the interest rate largely.
Self employed loans help borrowers make up for an important discrepancy. The self employed people are not able to prove their income. In fact, they cover up their income to evade taxes. Lenders, who need income records to check viability of borrower for loans, feel unsafe to deal with persons who only claim to have a certain income. Self employed loans can in such cases work as a self certified loan where borrowers have to themselves certify their income.