In this world, we aim to have all the things we needed and wanted; from automotive vehicles, houses, lots, to simpler things like watches, phones, laptops, and much more. Although we want to achieve all these things to entertain us, our family, and to provide better security, we also wanted to save more. However, the lack of money will hinder you from buying the item that you need. Also, if your money will be available a few days or months later and you need to buy a particular thing, then it will be difficult for you as well.
You do not have to worry. There are banks and firms that offer financing services to aid you in times of need. With their agreement and assets, you can obtain the money you needed. But if you are looking for faster and easier agreement firms, there are homeowners who do business in their houses. Furthermore, these banking firms will aid you in times of buying very big purchases. Choosing, between banks or in-house financing, you might want to take into consideration the strengths and weaknesses of in-house financing.
Comparing banks with in-house financing, it is obvious that in-house financing requires less paperwork. Banks as known to many people requires multiple documents that need submitting in order to properly satisfy their terms of the agreement. These papers include ITR or income tax returns, certificates that show you are employed and has a stable job, registration or business, financial statements, and valid I.D. or identification, which will all undergo through thorough investigation and review. In-house financing only requires your certificate of employment or your source of income. After agreeing on the date of payment, or annuity of the money, it will then be followed by an easy process of writing a signature on an agreement. It is that easy.
Unstrict with the rules
Banks, having a huge and complex structure, has multiple requirements and rules in their system in order for you to interact and acquire the money and the help you needed. You should meet their basic requirements like a 2-year employment or some three, your income should not go below 400 dollars to 600 dollars. For the condition of self-employed customers, their business should be working for 2 or more years and has a substantial profit. These things will help you get your loan in the bank since it will convince them that you are able to pay for your loan. But in-house financing doesn’t take these matters into account.
Higher Interest rate and shorter settling period
Although in-house financing is helpful in fast pace agreements, the interest imparted on your borrowed money is much bigger than that of banks. Most of the interest rates of banks range from 4 percent to 15 percent, depending on the current condition of the economy. In in-house financing, the range of interest rates is a little bit higher; it is about 15% to 20% at most. Also, the settling period or the payment period is shorter with in-house financing. Mostly, it runs from 1 year to 2 years monthly payment period.