Lending stream is one lender that has defined the face of payday lending. In an industry which is thriving on high interest rates and charges to the borrowers, Lending stream is a name that stands apart. This can be vouched for by borrowers who believe in their commitment to service, their emphasis on transparency and competitive interest rates. Many financial experts say that the policies that a lender functions on define his reputation. This can stand testament to the services that Lending stream has provided to their customers worldwide. They are known to be one of the few lenders who withstand from engaging in fraudulent practices and one who hold customer satisfaction in far greater esteem than the rest of their competitors. This can perhaps be understood by their company being one of the few major players not reporting a growth in 2 years.
Introduction into Lending Stream:
Lending Stream is a regular payday lender who has been in the industry since 2008, providing short term lines of credit to borrowers all over UK. The USP of Lending Stream is their strict affordability analysis which differentiates them from the rest of their competitors. The main idea behind this is to evaluate whether the borrower is able to repay the loan in a sustainable manner over a period of time.
They have been founded by the same group of people who had developed the fraud detection system which was instrumental in protecting transactions on over 2.5 billion credit cards worldwide. So it is not difficult to understand the depth in their experience. Their team consists of brilliant data scientists, engineers and business analysts all over the world.
Their main philosophy behind their inception is the notion that “who deserves credit, should get credit”. This is important as there are many borrowers who are financially irresponsible who are being provided credit by many lenders in the market without a thorough back ground check. This leads to discrepancies in functioning, default on loans and others. They are using their technology and their knowledge and experience in the field to develop innovative products that could uplift people beyond their current state of financial dependence and make them more responsible borrowers.
There are some things that one should know about payday loans and Lending Stream ensures those questions are answered in the most appropriate manner possible.
What are the eligibility criteria?
The eligibility criteria are one major concern for an individual wanting to apply for these services. It is needed to be understood that one must be 18 years of age along with a stable income of at least 400 pounds, a UK citizen and must have a valid debit card and a bank account. Self-employed people are not eligible for this type of loan as the risk is more in businesses, but there are several other financial institutions that are serving their needs.
What is the approval process like?
The approval process needs to be strict since it is the one area which differentiates Lending stream from its competitors and also adds value to their practices. In order to decide how much one should borrow, they use their expertise on technology to devise a sophisticated credit scoring system and an affordability analysis which ensures that they choose the right candidate for the loan. The process is fairly simple as once you apply for the loan, your personal financial situation is analyzed and if all goes well, the money is credited to your account within 24 hours.
What about no fee loans?
Understanding the many complications behind no fee loans, it is first important to understand what a no fee loan is. It is generally referred to as a financial term which indicates the absence of any fees while applying for a loan. Although there aren’t many institutions that are offering no fee loans, Lending stream could be one of the pioneers of this type of service. They have loans which carry no application fees, no transaction fees and no early repayment fees.
What is the loan fee?
This is an important consideration for the borrowers as there are thousands of major players in the market dealing with payday loans and this is one feature which makes one popular over the other. In a competitive environment such as this one, the lender with the lowest fee wins. There are loan fees which need to be understood and for that, let us discuss the following:
- The first time that you default on a payment on the specified repayment date, a default charge of 15 pounds is charged.
- If on any other occasion, you are unable to pay the loan on the relevant repayment date, if the default charge is not charged to you on one occasion, a further charge is levied which could be combined default charges amounting to 15 pounds.
What are the risks involved with taking out a loan?
A borrower needs to understand that there are several risks involved with taking out these types of loans and it is an important consideration to know what you are getting into. It is understandable that you might have unprecedented expenses and a legitimate reason for applying for such a loan, but what is more important is to know what your future ability will be to repay your loan. As this can lead to more expenses and default charges that can add up and become a much larger amount than the one you had originally bargained for. The team at Lending Stream ensures they have done a thorough check on your affordability and guide you through the entire process so that you can make an informed decision. There is a certain science behind their practices and they play an advisory role more than just a lending role, which has served as a benefit to anyone who has been associated with them.
The responsibility lies with the borrower and not just with the lender alone and this is something that needs to be reiterated by every lender in the business.