Personal Loan - first chapter
359 days ago
Personal loan: The right option for you!
What is meant by personal loan?
The money that people borrow from credit union or bank or from a personal loan lender is termed as personal loan. This has to be paid back in payments that are fixed on monthly basis usually over the period of 2-5 years. The personal loan lenders charge yearly percentage rates ranging from 6-36%.
No collateral is there to back up most of the personal loans and therefore they are loose and unsafe. When the loan is backed by some asset such as house or car, this is termed as secured loan that is comparatively cheaper. However, the defaulter might lose the asset.
In general terms, the skill of money handling is termed as personal finance. For any household or individual, the financial decisions are involved in the personal finance. It involves the practice of saving, earning, spending and investing.
Personal finance matters involve financial product’s purchasing such as home and life insurance, credit cards, investments of several types, mortgages etc. One of the parts of personal finance is banking that includes savings and checking accounts etc.
For getting an idea of what the repayments of the personal loan could be, the personal calculator is used. It provides an idea of the amount that is affordable for you to borrow and what will be the duration in which you will be able to pay off the loan.
Depending on the financial status of a person, there might be variations in the offered rates of interest.
The actual cost of the loan could be calculated on the basis of the tool of comparison rate. Interest rate does not mean the only cost while it forms a major component. The actual cost of a loan is affected by the other charges and fees. While comparing the interest rate, the calculation of these charges and fees are also considered.
Different rates of comparison of personal loan might be there depending on different terms and amounts. The interest rate comparison might not be affected by the costs savings like fee waivers or other costs like fees of early repayment or redraw fees. However, the loan cost might be influenced by these expenses.
While making decision of which personal loan is best for you, the pros and cons of personal loan might be helpful. The benefits of personal loans are:
Viable offers and low rates of interest
Better rates than that offered by the credit cards
Facility to finance wide ranging expenses and needs.
Simple and hassle free processes of online application
Funds are received by consumers fast-generally in 1-5 trade days
No asset is tied to these loans i.e. these are unsecured
The money could be used for any motive such as to begin a small business, cover remedial expenses or debt consolidation. You can easily apply for personal loan at ourmoneymarket.com and get best interest rates. The personal loan rates are generally cheaper when compared to the credit cards rates. Also, higher limits are offered on the amount that could be borrowed by the person.