Personal Loans: Meeting Monetary Needs

By: Angelo Drew

Loans can come in handy at the time of immediate monetary needs. Typically, loans are segregated into two types: secured personal loans and unsecured personal loans.

Secured personal loans are a boon for collateral owners, who can use the equity of their home to bring in the amount. With these loans one can get a bigger amount with a long repayment term (leads to better management of finances); and the interest rates are low with collateral in place. The lenders view this as a cushion against a possible repayment default from the loan taker. In case of a repayment default, the collateral can always be sold off to recoup the loan amount.

Unsecured personal loans are more far-reaching in that they can be utilised by both the homeowner and the tenant. For the latter, there is not much option. Homeowners sceptical of putting collateral to procure a loan can also avail unsecured loans. These loans so not necessitate property evaluation and paperwork, and thus can be availed rather quickly. However, unsecured loans do come with higher interest rates, as there is no safety of collateral for the lenders.

Personal loans can be availed from a number of sources, like building societies, traditional banks and the online fraternity. Of all these options, the latter provides the greatest convenience and expediency. The Internet is a great platform to advertise loan products and is something of a meeting ground for both lenders and borrowers.

Still, it is well advised that people availing personal loans do so with prudence and a bit of research behind them. There are a number of unlicensed lenders out there feverishly advertising their products. The loans they have may look perfect from the outside, but can cost a fortune for the borrower when all said and done, hidden charges and all.

Personal Loans
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