Personal Loans

Personal loans are loans that are easily available to help consumers fulfill their financial and monetary needs. They can be taken to fulfill all needs big or small. You may use it consolidate your debt, pay high rate credit card dues, buy the latest Mercedes, go on a luxurious holiday or buy your dream house with the white picket fence.

Types of loans

There are many types of loans offered these days. The most basic two types are:

Unsecured Loans

Unsecured Loans do not require your property as security. The rates of interest and interest rates are higher in this loan type. These loans are always hard to obtain as the lender may be anxious about repayment.

Secured Loans

Secured Loans require collateral and carry low rates of interest. They offer flexible repayment terms and the amount of monthly payment is small.

Types of loans

Depending upon the Interest’s percentage, personal loans can be grouped as:

Adjustable Loans

As the average rates in the market change, the amount of monthly payments may be adjusted throughout the loan period. The rate of interest on an Adjustable Rate Loan also keeps changing.

Fixed Rate Loans

The amount of monthly payment and the rate of interest remain the same throughout the loan period.

Types of loans

Based on the Mode of Repayment, personal loans can be classified as:

Installment Loans

In case of this type of loan, the amount, along with its interest, is paid again in the shape of 30 days installments unless the loan’s time-window expires.

Balloon Loans

This type allows you to pay interest at regular intervals and the entire principal amount that can be paid again at the ending of a loan episode.

Recents Articles

All in all, these loans are a wonderful option to bust the financial stress. But it is vital to play it safe, because failing to pay the loan back within the given time may bring situations that you wouldn’t want to encounter.