Private lenders are non-traditional lending institutions owned by private financers. They offer loans and financial assistance to people who apply for one just like a regular bank. The difference is that their requirements are not as stringent. They have a set of criteria for approving loans, that’s for sure, but you don’t need to pay eye and tooth just to get it approved.
Another advantage of using private lenders is that they offer bigger mortgage amounts than banks. This is part of their marketing strategy so more people will come to them for loans. This is advantageous for people because they can get a bigger property for the amount given by the private lender.
Private lenders also offer more flexible payment terms and loan terms. Unlike banks that are very rigid with the payment terms and loan terms, private lenders offer more freedom to choose the payment and loan terms you can afford. They want to make it easy for people to get that loan so they make sure everything is simple as 1, 2, 3.
The private lenders also rarely request for collateral and other things in exchange for your loan. Their criteria allow them to gauge how much they can afford to lend you without risking too much from their end.