Amara walker January 31, 2024

Before dealing with any company for a loan, you must verify its existence. In a world vulnerable to fraud and easy accessibility to sensitive details, researching is a must. It will help you know the whereabouts of the loan provider, the reliability and operations existence.

Additionally, analysing the reviews will help you know the company’s proceedings and terms of dealing with issues. It will help you choose the right loan provider for your needs.

Thus, verifying a lender’s credentials before dealing is crucial whether you are a business or an individual entity. You can begin your assessment by asking some relevant questions.

It will help you ensure the company’s legitimacy and clear your doubts regarding the loan. Finding a person providing a legit loan is complicated in a pool of false lenders. Thus, the blog may help you ask the right questions while seeking a legit loan.

What should you ask while taking a legitimate loan?

Asking the right questions helps you understand whether the company and the loan are right for you. Additionally, it will help you know the impact of the loan on your finances.

Read ahead to know the questions to ask while applying for legit loans. Legit loans are loans that are nothing but loans provided by a legitimate company. It prioritises the borrower’s financial well-being as the central spot.

1) Do you have a relevant office location?

Most lenders operating online share a physical location that ensures their existence.  Identify whether the office location exists and whether the people operating share the required expertise. It will help you ensure that the people on the other side are reliable. Moreover, it grants you the chance to interact with the customers there. It will give you a clear glimpse of the operations.

Alternatively, if the company does not answer the questions or says it deals only online, refrain from it. It may not be a legitimate one.

2) Do you conduct a credit check?

It is one of the most important questions to ask while seeking legit loans in the Ireland marketplace. Every responsible and legal lender in the country conducts a few credit checks before approving the loan. It helps him gauge the affordability of the person.

 If the person cannot afford the loan and a lender approves it, it can prove a loss for both. Thus, identify whether the lender you are dealing with conducts a basic credit check or not. If he agrees to provide a guaranteed loan from one, leave the table. He may not be a legitimate one.

3) What personal information do you seek?

Most responsible and credible lenders only require basic information to approve a loan. For example, you may spot one asking for details like- name, contact number, email ID, amount needed for loan and the purpose of the same. Additionally, he seeks an ID and income proof mainly to provide the loan if there is no collateral involved. 

Alternatively, if a lender asks detailed questions regarding personal life and finances that have nothing to do with the loan proceedings, avoid him altogether.

Additionally, confirm what he plans to use the information for. Most legitimate lending sites issue a clear overview of how they intend to use the information you provide. If this goes missing from the site, it may not suit you.

4) Do you charge additional/ hidden fees?

Generally, a reliable lender is upfront and transparent about the loan fees. You may encounter fees like- loan origination fees, loan establishment fees, loan closure fees, administration fees, missed payment fees, penalty or prepayment fees and interest rates. 

If you encounter a lender charging additional fees in the agreement that you are not familiar with, ask him. He may not be ideal if he hesitates to provide the information or details about the same.

5) Do the interest rates stay the same for the loan term?

It is one of the most important questions to ask the lender. Ingenuine lenders provide loans at unbelievable interest rates initially but raise them soon after the loan approval. It makes it difficult for individuals to manage the loans later.

Alternatively, if you deal with a legitimate loan provider, he provides you with a detailed insight into the loan terms and interest rates. He helps you understand the factors that may increase the interest rates. It may be missed payments, penalties, or economic factors, pausing payments that may increase the interest costs. It will help you choose the right loan for your income and affordability.

6) Do you charge upfront money for short-term loans?

As the name suggests, short-term loans are loans for emergencies and urgent cash purposes. Thus, the amount that one could borrow here stays low, up to €5000. No right lender asks for an upfront payment on such a small amount of loan. It reflects a legit loan.

However, if a company asks for an upfront fee or payment on a loan not exceeding €10000, he may not be a legal one. Thus, avoid dealing with fraudsters.

7) Do you have stringent and fixed repayment guidelines?

Most genuine lenders prioritise customer comfort while helping them with financial assistance. It provides loans with flexible repayment terms and guidelines. It helps one adjust their finances and payments according to what’s possible.

Alternatively, unjust loan providers are stringent about the repayment terms. They do not budge from compromising or helping the borrower. Thus, check whether the lender shares any backup plan if your finances change. If not, then he may not be right for you.

8) How do you follow up with the loan proceedings and payments?

Most legit loan providers assist customers at every spot. From helping them find the right amount to borrow to preparing a repayment plan, they assist customers in everything.

After loan approval, the legal company constantly reminds one of the payments and the remaining balance. It helps the person budget for payments easily.  Reminders, emails, and constant payment assistance regarding financial facilities like small loans in Ireland’s marketplace are crucial. These loans share competitive interest rates, and not making regular payments impacts credit scores. Thus, legal loan providers help with re-scheduling payments, halting payments and other personalized solutions to manage payments if income falls.

Alternatively, farcical lenders fail to provide the required assistance to manage the payments well. It does lead to default and overarching penalties. It eventually impacts personal finances.

Bottom line

Spotting legal loans is challenging in a pool of fraudulent loan providers. However, asking these questions with the lender helps you go with the right one. It ensures that you get the best for your requirements. Apart from that, confirm the physical address, website, and contact number before making a pact with the lender. It will help you avoid the consequences that you may face later. Additionally, it prevents you from sabotaging your financial interests.