So you are here because you are looking for a lending company that offers lowest interest rate for a seaman loan. Fact is, even if and eventually, there is one, the difference will lie in how fast they process the loan and the policies and requirements that come with your application. There are so many questions for a seafarer before he or she decides to apply for cash advance to a provider. As a loan consultant, I would like to open up to the different choices you have with respect to programs and policies as well as the exact percentage of interest that my providers have. This way, you won’t have a hard time trying to call and search online to find which one offers the lowest interest rate today compared to banks.
Why Borrowers Choose Private Lenders Over Banks – Time to Process
First and foremost, from my experience in the lending industry for seaman loan, I must admit that many banks do offer the lowest rate but the big problem is that all of these banks would require so many documentary requirements and the processing would take you up to 2 weeks because there is a credit investigation involved as part of the procedure to get an approval for a seaman loan application. This is the very reason why maritime workers in the Philippines choose to apply to lending companies rather than to banks even if they know for a fact that these financial institutions offer the lowest rates for a loan interest.
Comparing Processing and Procedures of Application
It is very easy to understand that if banks would require so many documents compared to private lending companies, bottom line is, seafarers would prefer to apply for seaman loan with the latter option, a 1 day release loan. Apart from requirement issues, the time to process with private lending companies would take faster than banks do. Overall, the procedure would be much better acceptable with private financing firms than financing institutions like banks.
Interest Rate and Charges
This factor is where banks go a head start with respect to advantage on their seaman personal loan offer. While these financing institutions incur less charges and lower interest rates, private lenders usually have 50% more than banks offer. Another fact is that banks don’t charge processing fees as high as private lenders do.
If you are a seafarer, which would you choose? Would you go for a fast loan processing with less documentary requirements and less hassle processing procedures? Or would you go for lower interest rate but with longer processing time and more documents needed before loan approval? You can make comparison using a loan calculator upon asking for a free quote. So what’s in it for you? 1 day release loan or 1 week processing (or more)? Choice is yours.
Interest Rate Comparison Sample:
- Bank Interest Rate – 1.39 % – 1.90 %
- Private Lenders – 3.0 % – 5.0 %
- In House Manning Agency – 1.25 % – 2.0 %