What is the difference between consumer loans and all the other kinds of loans? When you stop and think about it, aren’t all loans consumer loans? If they aren’t there for consumers to use, then who are these loans for?
Consumer loans are a specific kind of loan. The name is applied by the industry itself, to make these small dollar loans stand out from the rest. Is this a good thing or a bad thing?
Consumer Loans Defined
Most lenders act like they are doing you a favor by approving your loan. You must put up some collateral, such as a house a car or a piece of land, in order to even be considered. The more you need money, the less likely you are to be approved for that money.
A consumer loan is a different kind of product. It is a small dollar, widely available loan that does not require collateral. And these loans can be obtained by almost any American with a source of income.
In other words, consumer loans are like Starbucks or Chipotle – they are available everywhere, to everyone, without making you jump through hoops or sign excessive paperwork.
Consumer loans are loans for the people. They give small sums of cash (up to $500 in most cases) to the people who need it, and offer them a long term payment schedule that will allow them to repay the loan a little at a time. It isn’t a payday loan, where the payments roll over and go on forever, it has the security and stability of a bank loan… without all the hoopla of having to go to a bank.
Consumer Loans Explained
Consider for a moment, that a loan is a product, no different than a car. Are you with us on this example? Think of a loan like it was a car.
Some cars are extremely expensive, and this cost is prohibitive to a lot of consumers. Not everyone can afford a brand new Ferrari can they?
But not everyone needs a Ferrari. Some people just need a reliable car they can use to meet their needs. It doesn’t have to be big or fancy, but they need it now.
These consumers are valuable, as well. Some car dealers focus only on luxury cars, but other dealers (or in this case lenders) exist to provide dependable cars to people that can’t afford a Ferrari.
And that is who we are at National Small Loan. We don’t offer huge, expensive loans, we focus on providing small, timely loans to the people who need them, when they need them.
No excess red tape, no long waiting period. Apply for a loan, and you will get your approval status in minutes.