In the modern era, loans have become an integral part of our lives. However, it is difficult to get a loan, for all the procedures,verifications and approvals. People often try to avoid loans for these reasons. However, there are loans which are so easy to obtain, such as the Settlement Loans. The prerequisite to be eligible for a settlement loan is that, you need to have a pending lawsuit filed in the court of law. Once this requirement is met its a speedy process from there on.
What is a settlement loan?
It is a loan you can claim on a pending case in the court. Generally, modern legal processes are time consuming sometimes go on for a lifetime. And in most of these cases it becomes burdensome to bear the costs related to the trial which include, the legal fees, medical bills, daily living and so on. In such a case settlement loan is very useful, its a lifeline to the claimant who is in a financial crisis. There are some cases where a claimant might have become physically challenged, and would not be in a position to bear the cost of the legal process, that’s when the settlement loan is so indispensable.
Advantages of a settlement loan:
The main advantage of a settlement loan is that, its approval is a speedy process. In most of the cases it is a hassle free procedure. In case of a traditional loan, there are up-front fees you need to bear and not to forget the processing fees which are quite high. And there are no credit checks that are required for you to be eligible. The icing on the cake is that there is no income requirement for the loan.What more, in every way you look at it there is nothing you will lose from such a procedure.
In a way settlement loan is not a loan, its an investment you are making for a future result and the best part is that you don’t need to repay the loan if you lose the case.As in traditional loans, you cannot back off from your responsibility of repaying it. In a settlement loan the loan amount is always less than the settlement amount you will receive by winning the lawsuit. So, there is always something left for you after you repay the loan. And also the lender cannot force the borrower to speed up the payment, the lender has to wait for the case to be closed no matter how many years the procedure takes. Even if you win the case you are not forced to speed up the repayment process.
The Other side of Settlement Loans:
The lending parties or the financers are those who finance these settlement loans. A claimant needs to apply to one of these parties and then the procedure starts for the approval. The financers perform a background check on the lawsuit and estimate the chances of you winning the case. It is the most important criteria these financers look for, once they are convinced that there are more chances for you to win the case, your request is approved. Its a profitable investment for the lender, as he is investing only on a prospective case.
The lending parties have become very competitive in providing settlement loans. Its again a plus point for the claimant, as he has choice of attractive interest rates.
As earlier said, there is nothing to lose from a settlement. Its always a thumbs up for the borrower. After reading all this, anyone would be tempted to choose a settlement loan rather than the traditional one.