When in need of credit, if borrowers take loans direct from the lender eliminating any third party involvement, then the costs and terms of the loan turn out to be much more favourable to both parties.
Loans direct are given the name because they do not involve any intermediaries like brokers or agents in their transactions. For most borrowers these loans are significantly less expensive and have a substantially reduced processing time making them fast as well. It is not always that borrowers know if their loans are direct or not especially when dealing with banks. If the bank or company you are borrowing from is not lending directly to you then you will end up paying a lot more for the loan. These costs are sometimes cleverly hidden amongst processing fees and interest payment requirements. So it is important that you do not take a loan without carefully looking at all the costs (processing fee+ interest payments) along with terms and conditions of the loan. Ensure that you take direct loans wherever possible.
Loans direct to borrowers are most often taken by students for educational purposes or by universities. If you are seeking a loan to help you continue your education, then this is the best type of loan for you. Universities have counsellors to help you decide on such loans and offer all sorts of assistance to help you pay off the loan in easy instalments while in college itself. If you are unable to clear the loan you can also consolidate loans and refinance them at low interest rates. Some federal loans to students are even waived off for those with disabilities or persons working in the public sector. In addition, federal loans have a wide variety of subsidized, unsubsidized and direct plus loans at varied interest rates and repayment options.
If you are able to secure a loan direct to yourself from a bank then it would be the best deal you can find on direct loans considering all the other factors of such loans. If you have a good credit score and can offer adequate collateral you may be able to cut your loan costs even further from the usually lower direct loan rates.
Another option to obtain loans direct is from finance companies. These often charge a higher interest rate than banks but offer you several other convenient options for processing, repayment and amount of collateral required. If you prefer finding a lender from the convenience of your home then the internet could also be a good source of information on online lenders who because of the low operation costs they incur, can afford to offer very competitive interest rates and relatively simple terms on their loans.
You could use some of the great sites that list such lenders and also include applications like interest calculators and tips and suggestions on finding a lender who suits you. All these make loans direct a very attractive option for all types of borrowers.
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