Personal Loans: Meeting the Borrowers Requirement

By: Gracy Bonsu

Personal loans can solve one's financial needs with ease. The borrower has the flexibility to utilise the loan amount for any purpose, which the lender is not bothered about. Almost every financial institution provides personal loans, and the process involved to clear the loan is smooth. While there are unlimited lenders providing personal loan, it's the duty of borrower to figure out the different loan deals, and choose the deal which suits his monetary circumstance.

Personal loans need simple documents for processing:

  • Proof of residence

  • Age proof

  • Borrower's credit records

  • Income and salary proofs

  • Number of dependents

Personal loans are secured and unsecured in nature. Loans which need a guarantee are in the category of secured loans. The amount and the duration of the loan are decided by the lender after evaluating the value of the property. Taking secured personal loans is a serious business as the risk of property is involved in this case. The factors that add to the popularity of this type of loan are:

  • Loan amount up to ?250,000

  • Choice of interest rates

  • Longer repayment period

People looking for a huge amount can opt for secured personal loans.

On the other hand unsecured personal loans don't require any collateral. As no security is provided to the lender, the borrower ends up paying a huge interest rate on the loan amount. The duration of repayment is up to 10 years, which in case of secured loans stretches up to 25 years. The amount the person can borrow is between ?5000 to ?25,000. However, the risk factor for the borrowers is minimal as no guarantee is provided to the lender.

Personal loans are easily available. However, choosing the right loan is an issue. Borrowers should be aware of their monetary standing; one should borrow the loan amount one is comfortable in repaying on time.

Personal Loans
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