Primarily, the role of a Loan broker is to act as a bridge between individuals seeking for a loan and lenders. A broker always works in the interest of both the parties keeping the scale balanced and neutral. Their job is to connect potential borrowers and lenders to perform a valued service as an intermediate. Once an individual fills out the available application form on the website, the broker’s responsibility is to float the application with the network of lenders and find out the best matches for the individual. Few online brokers in the UK compare various loans and present the buyer a list of options to choose from which also enhances the flexibility and adds transparency to the whole system. The emergence of online brokers for a personal unsecured loan or any short-term unsecured loan in the recent years has made lives much easier in terms of financial services usage.
Online brokers and lenders are rapidly filling up the market as an alternative to conventional brokers and lenders. Because people need banking services but not necessarily a bank. Unlike conventional banks, these FCA regulated brokers allow maximum accessibility to any available financial products. Apart from accessibility, these firms in the UK also provide cost-effective financial products along with flexibility.
Let’s know about the reliability of these online loan brokers in the UK who are offering personal unsecured loans to people who are seeking for a loan without keeping any of their assets at stake. A personal unsecured loan is a short-term unsecured loan which can be utilized for any financial emergency or need and it doesn’t involve any asset or property as a collateral. People often opt for these types of loan in the UK as it reduces the risk of any loss of their collateral. An individual opting for a loan is already going through a financial upheaval, and if during that time, an important asset of them is being put at stake, it might be quite disturbing for them. Hence, a personal unsecured loan is often regarded as the best solutions for treating an emergency or unavoidable financial urgency. The financial regulatory body in the UK, Financial Conduct Authority, operated independently of the government to regulate financial firms who are offering services to consumers and ensures the integrity of the financial markets in the United Kingdom. It protects consumers in a wide range of ways and monitor which firms are eligible to enter the UK’s financial market.
An individual seeking for a personal unsecured loan in the UK should always check whether the firm from which he or she is borrowing is FCA registered or not. Because the Financial Conduct Authority supports healthy competition and integrity in the financial system of the United Kingdom and it leads to consumer protection as well. Any firm which is offering financial products to the consumers of the UK, if found to be not following the rules and guidelines laid down by the FCA, the FCA intervenes to maintain the integrity. The sole purpose of Financial Conduct Authority (FCA) is to monitor the business, financial products and services of the financial firm to protect the consumers.
From 2013 – 2014, after the establishment of the FCA, loans through online brokers in the UK have become safer. It introduced many regulations to make sure that the financial offerings made by financial firms in the UK are safe for the consumer use. Post introduction of such stringent and strict rules and regulations, unethical credit brokers and lenders left the financial market of the UK. It can be considered that the FCA had a reflective impact on the safety of online loans available through online loan brokers in the UK. Every financial firm in the United Kingdom is thoroughly checked and assessed to ensure safe loan lending practices. As a result of this many firms were thought to be not fit to hold a license.
Online loan brokering and the lending system has gained huge popularity due to being safe, easy to access, flexible, and transparent. Online processing of a loan approval doesn’t take months rather the decision is informed to a potential borrower instantly. A borrower doesn’t even have to step out of his home to receive the loan amount as everything happens online. Thanks to digitalization and the FCA. Even the credit products have become secured and safe due to episodic inspections of brokers and lenders internal documentation to ensure healthy compliance processes. The General Data Protection Regulation (GDPR) is expected to improve borrower’s safety post its enactment on May 2018. GDPR also plays a significant role in ensuring the safety of the consumers borrowing a loan.
It is always recommended to opt for loans through an FCA registered and regulated broker or lender. Or else, an individual looking for a personal unsecured loan can also find loans directly from loan companies. But in case an individual has no credit history at all or he or she possesses a bad or poor credit history, then opting for a loan through a broker is advisable. Let’s list down few advantages of applying for a loan through an online FCA registered broker:
- Simple
The process of loan application is very simple. Fill out an application form that would be available on the website with complete details and decision regarding the loan will be informed to you. The filled application will be floated among the network of regulated lenders by the broker. And post that, the broker will present you with options of lenders to choose from.
- Instant
Everything is carried out instantly. If approved, the loan amount will be disbursed immediately. This saves a lot of time as you do not have to wait even when in dire need of cash. This particular system completely omits the need for a potential borrower to visit a bank and wait for months after religiously completing all the mandatory process for a loan.
- Credit Check
When a single application form is floated among multiple lenders, the credit check happens only once. This is the biggest advantage can gain from applying for loans through online loan brokers. The credit rating is not affected by multiple credit checks, as for that one application form, the credit check will take place once only.
- Secured
If an individual has chosen to opt for a loan through a reputed and FCA regulated broker online, then the borrower can be assured of safe and secured loans as these online brokers must have scrutinized the loan companies before establishing a network with them. In case of any issue, the online broker will resolve it for you.
Some suggestions and tips for selecting a trusted and reliable loan broker company in the UK:
- Should be FCA Registered
- Impartial Reviews
- Cost and Fees
- The range of Financial Products Being Offered
- Expert Guidance on Financial Needs
Always remember, in case of any issue, you can always reach out to the FCA or the broker to resolve the issue immediately and in an amicable manner. Borrowing responsibly and sensibly is considered the safest practice. Go through the broker’s website thoroughly and connect with them before opting for a loan. Double check by talking to their financial experts and then decide on something.
