They say money talks, but what does it say when we need to make difficult choices about borrowing? This is especially true when we need some quick cash and are weighing our options between Grab Loans and private moneylenders.
Both are lifesavers when you’re in a financial pinch. So, if you need financial aid and both options are open to you, which one should you take out a loan from? To help you know which option is right for you, let’s look at their differences.
What is Grab Loan?
Grab Loans, provided by Grab Financial Group, are personal loans for their drivers and delivery partners. They are designed to help Grab’s gig workers access quick cash when they need it most.
Grab Loans are generally tailored specifically for Grab workers, and if you are a Grab driver or delivery partner, it can be helpful. This means goodbye to the lengthy (and stressful) application process, as their requirements are often more lenient than traditional bank loans. Also, your work history and earnings info are in Grab’s database, allowing them to decide on your loan application faster.
What about private moneylenders
Private lenders have been around for a while, offering a lifeline to people who might otherwise be out of options. Which is why these days, private moneylenders like Elite Investment & Credit have become a popular choice for those who need quick cash or get denied a bank loan.
So even if your credit history isn’t flawless, there’s still a chance that they will approve your loan. Because of this more accommodating approach to lending, they managed to separate themselves from banks and attract borrowers on a regular basis.
Comparing the two
In terms of loan amounts and terms, Grab Loans typically limit what a Grab worker can borrow based on their earnings. If you work for Grab, this can be good because you don’t want to borrow more than you can afford to repay. However, if you need bigger loan amounts, this might not be an ideal option. With private moneylenders, you might be able to borrow larger sums or negotiate more flexible repayment terms.
Since they’re backed by a large company and are specifically designed for Grab workers, Grab Loans’ interest rates tend to be more competitive. Private moneylenders, meanwhile, might charge higher interest rates. This is to offset the risk of lending to a broader range of borrowers.
Lastly, when it comes to processing times, either option is good if you need money ASAP. Grab Loan’s application process is quick and can be done on the Grab app. But private moneylenders aren’t slouches either, as they offer same-day approvals and quick cash disbursements.
Conclusion
In reality, there is no “best” loan out there, and if there is, that’s on a case-to-case basis. The most important thing is simply to take out a loan, whether it’s from Grab or a money lender, that will address your financial needs or help you achieve your goals. We hope this blog post helped!
