A non-bank lender is a financial institution that offers loan products but does not have a full banking license. Unlike traditional banks, non-bank lenders do not take deposits from customers. Instead, they typically obtain their funding from wholesale markets, private investors, or other financial institutions. Non-bank lenders often focus on specific niches in the lending market, such as:
- Mortgage Loans: Offering home loans to borrowers, including those with non-standard documentation or who are self-employed.
- Personal Loans: Providing unsecured loans for various personal expenses.
- Commercial Loans: Financing for business operations, equipment, or real estate.
- Car Loans: Financing for purchasing vehicles.
Non-bank lenders can be more flexible with their lending criteria compared to traditional banks, making them an attractive option for borrowers who may not qualify for a loan from a bank. They may also offer competitive interest rates and more specialized loan products tailored to the needs of specific borrower groups, such as expats, non-residents, and individuals with unique income situations.