Are you applying for low documentation loans? Learn more about them and the factors to consider when applying for low doc loans.
Emergencies happen, and when they do, it could be that you have very little money or none at all to fix until your next payday comes in. With no bank savings to fall back on, and such little time to make quick decisions, especially if it’s a medical emergency, where would you get the stash of cash you need? When you’re a small business owner or self-employed with no tax returns or financial documents to submit to banks, low doc loans can be the most logical, if not the only choice.
While you may be in a rush to apply for the first low doc loan option you come across there are important things to consider when choosing the most appropriate loan alternative for you.
Here are some of them:
Eligibility
Not everyone can apply for low document loans. Only self-employed borrowers who have legitimate reasons for not submitting proof of income, such late filing of tax returns, can apply.
Low doc loans do not require the usual documents used by banks and big lending forms to verify income, such as payslips, financial statements and tax returns. Instead, you are only required to sign an income declaration form that will be the basis of their assessment. Most lenders ask low doc loan applications to declare their assets and liabilities and some lenders may ask you to include this in your income declaration form. During the assessment, lenders usually check whether your income, assets and your age match.
At the Australian Lending Centre, our team of loan specialists strives to keep the proof of income and documentation at a minimum. If an income declaration is the only thing you can present, well, that’s enough for us! Who knows? You may qualify for a loan of up to $3 million.
Interest rate
One of the big factors to consider when applying for low doc loans is the interest rate. It’s important to shop around and make sure that you get the lowest one available in the market, without the hidden charges.
Low doc loans offered by some banks and financing institutions may come at extra costs because of reduced financial documentation. One strategy is to present more financial document to lower the interest rate. You may be required to pay extra fees and charges and higher deposits. Others require security such as investments, cars and other properties. But you want none of that; we can offer you the most competitive rates suitable for self-employed borrowers without the heavy paperwork. We are also known for fast turnaround and processing times.
Credit rating
Finding low doc loans with lower interest rates is difficult when you have a bad credit rating. You may need a little more time to get your good credit rating back, as it would depend on your credit payments. But, if don’t have the luxury of time or the money to pay them as soon as you can, the Australian Lending Centre offers low doc loans for people with bad credit. You may want to avail of our low doc car loans, home loans and personal loans. You may also try our low doc investment loans to support your dreams.
Learn more about our low doc loans. Contact us today!
