Do private lender give good interest rate?

Question

I have heard that their interest rates are lower than that of the banks. Can this be confirmed?

Thanks Michael for the input.

Answer 1

Yes, most non-bank lenders offer lower interest rates than banks and also they have faster processing time. To get the best deals by yourself, go out and shop around at what banks and non-bank lenders can offer you. Make sure to ask about fees/charges on it, aside from interest rate difference, private lenders sometimes do not charge any fees. You can also go online and do the searching there. You can send email or even fax them what you need.

If you do not want to go through all of it alone, you can go to brokers, but then again, shop and compare what the other broker can give you.

Answer 2

Not necessarily. It is always good to shop around. Most of he time private lenders can fund you when a bank cannot. I work in commercial finance. Most banks' rates are generally the best (except for an SBA loan). The best thing to do is research all of your options and then compare the pros and cons.

Answer 3

Any "Private Lenders" on this, or any other message board, is a scammer and should be avoided.

One of way they lure victims is to offer a very low interest rate on a personal loan. You can offer any rate you want to if have no intention of lending any money.

Be forewarned, any lender that offers you a loan at a very low rate but wants you to pay them some money first is just a scammer.