The market for personal loans is huge offering a solution for everybody’s financial circumstances. Personal loans basically are the general term for all kinds of loan falling under the categories of ‘secured’ and ‘unsecured’.
The two types of personal loans can be differentiated by the collateral attached to it. With a secured personal loan, a security in the form of a property or other collateral is attached. Only on the basis of a security can one apply for a secured personal loan. On the other hand, unsecured loans do not require any collateral attached to it and are meant for all those who cannot provide a security.
Another major difference between the two types of personal loans is the interest rate and amount one can borrow. The loan amount with secured loan is usually more that too at a lower interest rate but the setback is the loss on the property. Bridging Loans for the businesses is possible at the electronic platform. Different types of personal loans are available and you should select the right one. It will offer the desired results to the people. The interest rate at the platform is less in comparison to the other loans.
With unsecured loans the time taken for approval is less and is a better option for smaller amount but the interest rate is comparatively higher due to no security provided by the applicant.
Now comes the important question of how to get personal loans?
All financial institutions providing loans have their own way of enquiring about the borrower. They tend to ask personal questions to get to know why you need the loan and how would you repay it. Only after enquiring about such details does the process of providing loans moves forward. The unsecured loans have much stricter credit requirements than the secured ones due to no security guarantee provided by the borrower.
Every loan that is taken has to be repaid and the financial institutions make sure of it. Every institution have their own rules and regulations besides the Government rules so to know more on how to get personal loans, the borrower should enquire about the rules, interest rate offered and other such details of the financial institution. Don’t rush to borrow loan from the first institution you visit. Take your time to choose the agency that offers best possible redemption charges, interest rate and offers easy availability of loans.
The loan term for personal loans can be from 3-25 years depending on the loan amount. It is advisable to not stretch personal loans as you may have to pay more in terms of interest. The interest rates might differ with the type of loan and the borrower’s financial circumstances.
The beauty of personal loans is that anybody and everybody can apply for a personal loan and use it in whichever way they want.
Know it all about how to secure personal loans
Everyone, at some point of time in their life, gets stuck due to lack of available finances. There are times when even, the most secured person you might know needs a little financial push for a smooth running and needs to borrow quick cash.
Borrowing loan is not such a tedious job as it is thought of. It is just another product that you buy. Before borrowing a loan you need to understand a few things that includes the market, your rights and how commercial lending works.
Once you understand the types of borrowing available in the market and the ones that would suit your requirements would make it easier to secure the funds fast.
Let’s have a look at the kinds of personal loans floating in the market and also how to get personal loans.
Short Term Loans
Short term loan as the name suggests refers to a loan amount borrowed for a short period of time and the most common one is called payday loans. The payday loans last usually for a month or till the payday. One of the quickest and easiest ways of borrowing as you can be sanctioned the loan within hours of asking for it depending on the rules of the financial institution.
To be granted such a loan, one need to be of the age eighteen or above, have a running bank account and lastly be employed with a regular income. The loan is usually repaid in a single payment on the day specified by you.
It is the easiest to get as there are mostly no credit check required and you don’t need to submit any documents or collateral.
Medium Term Loans
A medium term borrowing is usually for a period of a year or two. The two options available are logbook and doorstep loans.
Logbook loans are specifically for vehicles and are secured only on documents. These loans do not require credit check and are secured through the documents. However one can lose the car if the repayments on the loan are not regular.
Doorstep loans are available for everyone even if they are unemployed. These loans are available at your door in cash hence the name doorstep loans.
Long Term Loans
Usually measured in years and also the two types of secured and unsecured loans, long term loans are a little harder to get.
For borrowing a secured loan, collateral has to be put up in exchange and if the repayments are not on time then there is a fair chance of you losing the collateral. Unsecured loans do not require any collateral to be put up but a good credit is a must. Also, a guarantor has to take the guarantee of taking over the repayments in case you cannot keep up with the repayments.