The Personal Loan

The Personal Loan
In today’s day and age,​ with the​ media bombarding all sorts of​ must have lifestyles,​ luxury products,​ the​ consumers’ desires and wants are at​ an​ all time high .​
To fulfill all of​ these requires lots of​ money .​
Our income and sources of​ income are limited,​ our desires are not .​
Today with Personal loan as​ the​ financial solution,​ it​ is​ very possible to​ comfortably live the​ lifestyle we want.
It is​ wiser to​ plan your expenditure and budget before you​ apply for your personal loan .​
When you​ are purchasing a​ loan product,​ make a​ small detailed study about how loans benefit and which schemes are most suited to​ you​ .​
Compare similar loan products from different lenders before you​ finalize on​ the​ best loan deal for you​ .​
Let us go to​ the​ core basics – What is​ a​ loan and why would you​ need one?
When you​ are in​ need of​ immediate money,​ it​ is​ not always possible to​ run to​ friends and family for help .​
The income you​ generate brings in​ a​ limited amount of​ funds .​
Yet for the​ bigger stuff,​ you​ need large amounts of​ money at​ as​ single time .​
For example: If you​ wish to​ buy a​ home,​ you​ would need to​ make a​ huge amount of​ payment for which it​ would take you​ years and years to​ save .​
Financial issues are personal .​
Loan is​ borrowing a​ sum of​ money that you​ promise to​ return .​
Banks,​ financial lenders,​ brokers,​ financial solutions companies – all of​ these have different loan packages to​ offer .​
When you​ take a​ loan on​ your individual name,​ it​ is​ called a​ personal loan.
Personal loans are offered by almost all lenders as​ it​ is​ the​ most basic and popular type of​ loan .​
Personal loans fall into two main categories – Unsecured personal loan and secured personal loan .​
Let us take a​ closer look at​ each of​ these individually –
Unsecured personal loan: This is​ the​ most simple and non-complicated type of​ borrowing .​
You apply for the​ amount you​ need .​
On approval you​ get the​ immediate loan amount .​
You agree with the​ lender to​ pay back the​ loan within a​ certain period of​ time with the​ interest amount.
Secured personal loan: This is​ a​ little more detailed in​ its structure,​ but has many more benefits too .​
You apply for the​ loan amount you​ require and keep with the​ lender a​ security such as​ your house,​ shop,​ land,​ car or​ similar valuable asset .​
The asset is​ evaluated and in​ proportion to​ the​ value you​ are given the​ funds .​
Secured loans usually are lenders favorites as​ it​ offers a​ low risk to​ the​ lender .​
Therefore,​ you​ can negotiate for lower interest rates.
In a​ secured personal loan,​ you​ can choose the​ interest type you​ want – a​ fixed or​ variable rate of​ interest .​
a​ fixed interest rate will remain so till the​ end of​ the​ loan tenure .​
Thus,​ you​ are assured of​ your repayment through out the​ years remaining the​ same.
Whereas,​ if​ your personal loan attracts a​ variable interest rate,​ then the​ repayment amount too fluctuates with the​ rate .​
Of the​ interest rate augments,​ then so does your loan repayment .​
But,​ on​ the​ other hand,​ if​ the​ interest rate drops,​ then the​ repayment amount you​ are paying is​ less .​
So you​ benefit by a​ variable interest rate on​ your personal loan.
Do bear in​ mind that repayments on​ personal loan should be comfortable for you​ to​ pay from your present income .​
On completion of​ all your repayments,​ the​ collateral with your lender is​ released .​
Regular and timely repayments on​ your personal loan can better your credit rating .​
Personal loans of​ varied kinds are available at​
The Personal Loan The Personal Loan Reviewed by Henda Yesti on August 13, 2018 Rating: 5

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