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 =96 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 =96 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 =96 Unsecured personal loan and secured
personal loan. Let us take a closer look at each of these
individually =96

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 =96 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

About The Author: Orion Pax knows all about the important of
personal loans, and the best place to get the personal loan you
need. Visit today to get the
personal loan that’s right for you, your needs and make your
dreams come true today!

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