Are you thinking about getting a loan from private lenders? So, think again because it will be not the right choice. In the future, you may face many issues related to private loans. In all states of the UAE, it is consider an illegal step due to various risks relates to private money lending. People usually go towards private money lenders in Dubai after the rejection of their Applications from different banks and government agencies. The urgent need for money insists they take that illegal step.
Normally, if you apply for a loan in a bank, you have to follow some rules and regulations set by the banking sector. This step is legal and positive, you just have to pass their requirement test. Bank will allow you to get a loan after getting your info and some important documents. On the other hand, private lenders give the money without any strict rules and regulations. Banks normally ask about your age, the minimum age should be about 21 years or more. Similarly, banks will verify your passport and your monthly income that you earn.
Private lenders will give you the amount without checking all these things. Private lenders make a contract with you and at the time of the contract, they will take your precious things. These things can be in the form of gold, papers of property, your vehicle, passport, ID card, and much more costly things.
Due to this illegal practice of private money lending institutions, they will charge the interest rates according to their own will. Normally, All these private institutions charge a very high-interest rate with no flexibility in time duration. All private money lenders in Dubai or the whole UAE can take advantage of your bad situation. They will give you an amount of loan within a short period of time, but will take your assets from you.
The major benefit of private lending is that, it will be available at any time. You can contact with the staff of private sector and within a short period, they will arrange all your money. Through this, you can fix all kind of disturbance happing in your life, due to a shortage of cash.
If you get a loan from any private institution, there will be no particularly designed rules. No age restrictions will interrupt you, no monthly earnings will be considered. There is much flexibility in all these terms and conditions as compared to the banking system.
Like banks, private lenders will not ask you to bring your all documents and show your previous history of credit. There will be no other requirement from private money lenders in Dubai. They will not ask you for any guarantee, your loan will be delivered as soon as possible or within 1 to 2 days.
There is a huge risk factor attach to the private sector’s money lending. you have to give them any valuable thing or asset against the loan. If you will not able to pay installments within the prescribed time, you may get threatened by private money lenders.
Private money lending is not Allowed in UAE, it is consider illegal practice due to various disadvantages. It can create dangerous effects on the common man’s life also. According to Dubai’s law, a common individual can not take a loan from such organizations, it is consider a punishable act.
The borrower always feels a huge burden of debt and always thinking about ways to get rid of that responsibility with huge interest. Sometimes, private money lenders in Dubai send threats for paying interest and installments. For such purpose, borrowers take a lot of stress and live a life full of sorrow and depression.
The fear of losing precious and expensive assets will make borrowers very upset. In the contract, it was clearly stated that, if installments will not reach on time, assets will not return at any cost. Those valuable assets can be of any type or in any form, for example, a luxurious car, property documents, jewelry, heavy electronics, etc.
The best option for taking a loan is from a government-registered institution or formal bank, because of less interest rate. All private lenders will give you a loan at a very high-interest rate. You will have to pay that interest at any cost with a monthly installment. If your business couldn’t generate much revenue, still you have to pay the interest. Private money lenders in Dubai will not be responsible for your loss and they may sell your submitted valuable things.