A personal loan is an unsecured loan that helps in meeting the financial requirements of you or your family members. Most of the Americans prefer loan as they can’t afford to buy a home or pay school fees of their children. Personal loans can be taken from a bank or a non-banking financial institutions. Personal loans don’t require any security or collateral to be paid up front. In most of the cases, lender do a background check to know the creditworthiness of the borrower before providing him with a loan. Personal loans can be used for various purposes like for traveling, for emergency purposes or for buying personal goods. The interest rates are comparatively higher compared to other loans such as home or education loans because of the risk involved in it. Personal loans come with fixed interest rates and a term that ranges from 1-5 years. Personal loans are given based on the borrower’s credit score. Borrowers with a high credit score is generally approved of giving personal loans. The personal loan availed has to be paid on time like any other loan as it would reflect on your credit score and can cause you trouble if you apply for loans in the future. But borrowing money can be a risky proposition and an emotional one. Only that amount should be borrowed which you can pay later.
Places you can get a loan from?
Which bank or Financial Institution to choose from?
Compare the interest rates from various banks and financial institutions. Some important factors that you need to look out for before you go for personal loan is the interest rates, loan tenure, processing fees, etc.
What can we use personal loans for?
As the name suggests, personal loans can be used for a variety of purposes and there isn’t any collateral to be paid upfront. The various uses of personal loan are
Why Personal Loan?
Personal Loan Comparison is personal: it can be used for any purpose as you want it. And the best part is that there is no collateral to be paid upfront. Personal Loans can be used to buy a car or renovate your house or go for a vacation. The choice is entirely yours. Other benefits of taking a personal loan is that it takes less time than other loans. You can get a loan through a money lender or a credit union and there is no need for a bank to give a personal loan. Loan can be taken from an amount as small as $1,000 to the amount as big as 1,00,000. The interest rate is lower than credit cards.
Eligibility Criteria to Avail a loan
The conditions differ from each bank but some of the common ones are:
The period of loan can be anywhere between 1 to 5 years depending on case to case basis. And the rate of interest also varies depending on the duration of the loan. And the loan amount is disbursed within a week to the borrower applying for a loan. The amount is received in the form of a check, draft or the amount is deposited in the borrower’s account electronically.
Advantages of Personal Loan
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