Personal Loan

About Personal Loan

Personal loan I a fixed amount borrowed from a lender which is paid back with interest over a set period which may be used to plan a fabulous wedding, home improvements, or tiding up finances. It can be used for any other purposes other than capital equipments. It is an unsecured loan which brings greater flexibility.

Comparison of credit card and personal loans

Depending on what is involved, intention o paying back and period to which the money will be paid back, personal loans has a predetermined amount of time to pay them off while credit card, depending on how often is used might last a lifetime resulting to unending debts. Credit cards tend to have higher rates than personal loans.

Frequently Asked Question

Benefits And Limitions of Personal loans

How Does personal loan works?

• It does not enquire collateral, although a higher interest rate is placed on the loan in return. Though collateral is not involved, the lenders can take your purchased item from you, if you are not able to pay back debts on time
• No perfect credit record is needed
• You don’t have to be a big earner
• Special vacations
• Planning for a wedding
• Unexpected expenses
• Uses of personal loans
• Home improvement

Things To Work Out for in a personal loan

• Qualification for the loan
• The amount to be borrowed
• The period it takes to pay back
• The competitive interest rate involved
• Early repayment terms
• Lenders financial institution should be compared, don’t be tempted to take out loans in your bank without comparing with other financial institution, choose that best suits your affordability
• Understand what it takes or the risk involved, this takes you checking up if you are eligible enough to take out loans