Personal Loan
Image by Pulpolux !!!
Personal Loan
A personal loan can be obtained for any individual need of a person. The advance can be obtained from an authorized institution like a bank or even from private lenders. A personal loan does not need to be directed on setting up something specific. The advance amount one gets may be utilized as per the desire of the consumer. There are two different kinds of such credit, the unsecured personal loans and the secured personal loan. There is some difference between the two and these needs to be made clear before proceeding further with a discussion on personal loan.
In case the consumer or borrower does not have anything to place as collateral against the loan amount, then the type of loan is termed as unsecured loan. An unsecured loan is risky for the bank or the lending agency, since they do not get security against the amount being loaned out. The unsecured loans can be obtained for a wide range of money. How much the bank may sanction depends on the credit history, the financial statements and the repayment period of the loan. The consumers having poor credit score can benefit from these loans. Unsecured loans charge high rates of interest.
Secured personal loans are loans against which some thing is put as collateral. It may be any asset. Property, cars or even jewelry can be kept as the collateral. These loans are less risky on part of the lenders, as they can get their hands on the collateral to recover their losses, in case of defaulting on the repayment. On the other hand the borrower is under immense pressure since he or she might stand to lose out on the collateral if he fails to come up with the payment. The interest rates for such loans are lower than unsecured loans.
Though there are no particular advantages of a personal loan, the advantages depend on the way a personal loan is planned for utilization. For some borrower who has easy repayment options and a solid plan about how to go about the loan procedure, the personal loans come as a boon. However, somebody with a poor sense of decision and lack of planning about repayment does not derive benefits from a personal loan. To gain the maximum out of a personal loan, the borrower needs to approach the institution with the best deal. A lot of research is needed to understand which schemes and rates are more rewarding. Personal loans come across as useful for people with low incomes as this loan helps in using the loan amount for some essential purpose, with the convenience of payments in installments.
The main disadvantage of a personal loan is the fact that they are risky if the borrower is not sure about its repayment resources. The secured loans can cause one to lose the collateral while the unsecured loans may cause one to lose sleep over the high installments. Either ways, the personal loans can be utilized to one?s benefit on the ground of prudent decisions and preparedness about the repayment structure.
Related Content:
Loans Personal And Business Loans. What are personal loans. What are business loans. Can I get a personal loan. Can anyone get a business loan?
Suggested Products:
Frequently Questions:
Question by sameerah: Has anyone ever heard of a loan service called ?choice personal loans? located in california> Are they real?
Best answer:
Answer by wizjp
http://www.choicepersonalloans.com/
I?d call the local better business bureau and see what they say
Add your own answer in the comments!
Source: http://g7finance.com/personal-finance/loans-credit/personal-loan/
tyler clementi beebe michelle malkin goodrich death penalty gary busey the x factor
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.