PROVIDENT LOAN PROS AND CONS
When you’re looking to borrow some cash, arranging to have a loan delivered straight to your home can be a direct and convenient option. This option actually exists and it’s called doorstep loans.
It won’t be a struggle to find doorstep loan lenders as there are many in the market. One of the most prominent doorstep lenders is Provident. But, before we check out this loan provider, let us first understand what a doorstep loan is.
What is a Doorstep loan?
Doorstep loans are also called home credit loans or home loans. They’re a type of personal loan. It’s pretty simple to understand as the name suggests – it’s cash loan that is delivered to your doorstep. An agent of the lender will then pop up to your home on a weekly basis to collect your loan repayments.
Doorstep loans give customers a chance to discuss their financial needs and personal circumstances face to face with the lender’s agent. Many people prefer this type of loan service because it allows them to manage their repayments in their home at a time and day that suits them.
How do doorstep loans work?
First, you need to determine how much you need to borrow and decide on the number of weeks you’d like to make repayments. Start your loan application online, and you’ll find out in minutes if you’ve been accepted in principle for a doorstep loan.
The application process is completed with a home visit. The agent who will come to your home will carry out an affordability assessment to ensure the loan is manageable and sustainable for you. You will need to provide proof of your ID, address, and your income. You also need to let them know of your outgoings.
If your loan is approved, an agent of your lender will deliver the loan to your home. And, he will do the same to collect your repayments from your home.
It is worthwhile to note that just like other types of credit, a doorstep loan can either have a positive or negative impact on your credit rating, depending on how well you manage it. To be safe, make sure you make repayments on time if you want to maintain a good credit rating.
For a doorstep lender to discuss your loan legally in your home, you must request this to happen in writing on your application form. This is what is known as a ‘request to call’. It simply means you have agreed that a company representative or lender’s agent can come to your home and discuss with you the loan you are applying.
Benefits of a Doorstep Loan
The convenience that doorstep loans provide is really its top benefit. The fact that an agent will come to your house to issue your loan, and then return every week so you can make repayments is such a huge convenience.
You also get a chance to the agent face-to-face and talk about your loan if you have any questions or problems.
If your credit rating is not good, a doorstep loan is a viable option for you. Take it as an opportunity to improve your credit score by not missing or delaying any payments.
Drawbacks of a Doorstep Loan
The only disadvantage of doorstep loans is the interest rates. They are slightly higher than other forms of lending. This is understandable because of the convenience, the extra effort, and services of the agents it provides.
Doorstep loans small, short-term loans, so they are not suitable if you need more than £1,000 for your first loan.
Provident Financial plc is a British sub-prime lender. It is also described as a “doorstep lender”, and is based in Bradford, West Yorkshire. It specialises in credit cards, home collected credit (HCC), online loans, as well as consumer car finance. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
In the UK, Provident Financial plc trades under several different brands. Among these brands include Vanquis for its credit cards, Provident Personal Credit for its home credit operations, Satsuma for its online instalment loans, Glo for its guarantor loans, and Moneybarn for its vehicle finance operations.
The home lending operations are based in the head office building on Godwin Street in Bradford, Vanquis Bank is based in London with purpose-built premises located in Chatham, Kent and Moneybarn is based in Petersfield, Hampshire.
Provident Doorstep Loans
Provident’s home credit business or doorstep loans lend to people in their homes through a network of local agents. Out of an estimated three million people who borrow from home credit providers, one million place their business with Provident home credit, giving the company an estimated 60% market share as of 2013.
All of the Provident employees carry official ID, so you’ll always know who you’re talking to. Provident loans have no hidden charges or fees for late payments. If you encounter any problems repaying your loan, their agents will be able to discuss your circumstances and help you get your account back on track.
With Provident, you can borrow anywhere from £100 to £1,000 that can be repaid over 13 to 52 weeks. APR is 1557.7%. Loan amounts are all subject to affordability.
Provident Customer Reviews
If you search online, you’ll see that Provident received a high rating in terms of customer service. Happy customers claim that this lending company provides fast and good service. Agents are friendly and easy to talk with. Others expressed their satisfaction in term of the agents’ professionalism and that they are very good in explaining the loan. With all these praises, customers are strongly recommending Providence, and that they will also avail their services again.
Doorstep loans can provide you with the money you need for emergency expenses. They are small, short-term loans ideal for urgent expenditures only. They are easy and hassle-free to apply and process. Convenient as they are, you’ll get extremely high interest rates as compared to regular loans.
Among the doorstep loan lenders in the UK, Provident is an established name, and it’s looking quite good when it comes to its customer service. Majority of its customers are happy and satisfied with its services. So, if you are considering a doorstep loan, Provident is a worthy consideration.