Personal Loans

Whatever your need, chances are a personal loan can meet it. New shoes? Home renovation? A trip to the islands? Huge TV? Personal loans can cover all these and many other expenses. Personal loans are multifunctional and affordable, with flexible terms and the ability to borrow a fairly large amount of money.

What is a Personal Loan?

A personal loan is, most often, an unsecured loan, which is a type of installment loan. A personal loan most often offers fixed rates. Unlike a credit card, a personal loan allows you to take out the entire amount at a time and then pay it off in monthly installments. You can use a personal loan for many purposes, for example, weddings, vacations, moving, and large purchases. But sometimes lenders limit the use of personal loans, such as not allowing them to pay for college tuition.

How does a Personal Loan Work?

The mechanism of how a personal loan works is quite simple. You borrow from $1,000 to $50,000 (however, there are lenders who are willing to lend up to $100,000). The entire loan amount is credited in one payment to your account, and after that, you make monthly payments for the period you have chosen. Typically, the term of a personal loan is from 12 months to 72 months.

Interest rates on personal loans can vary. They largely depend on your credit score; the better it is, the lower the interest rate you can expect.

How to Get a Personal Loan?

First, you need to contact the lender of your choice. A great way to find the best loan is to pre-qualify for several different offers and choose the one that suits you best.

Once you have chosen a lender, you need to fill out an application. You can usually do this online, which will take no more than ten minutes.

If the application is approved, you will receive a loan agreement containing all the conditions. Read it carefully and sign if everything suits you.

After all paperwork is settled, you will receive money in your account. It may take about a week, but everything will depend on your lender. After that, you can spend money the way you want. And do not forget that monthly payments must be made on time, the date is usually specified in your loan agreement.