Search
Sponsored Links
Sponsored Links

 

 

What are Personal Loans?


As the term implies, Personal loans are simply loans for any personal use. They're known as personal loans because the money is for personal use, such as buying a car or home improvements. Most lenders do not stipulate what you can spend your personal loan on, generally allowing for any purpose.

A Personal Loan is a method of borrowing a lump sum of money from a bank, building society or other financial institution to finance the buying of a new car, make home improvements or go on a luxury holiday.

Personal loans have become a popular way of raising much-needed funds for personal use Personal loan amounts vary from between £500 to £25,000. Normally, you'll receive a lump sum.

In return, you agree to make regular repayments, usually monthly. Assuming you've taken out a repayment loan, which will usually be the case, some of the money you repay will go towards servicing the loan and the rest of your payment will be used to pay off capital and reduce the outstanding debt.

Personal loans are repayable on a monthly basis at a fixed rate of interest. Generally personal loans are offered by banks, financial institutions or building societies and are available in a variety of formats with variations in size, term and purpose of the loan. It is important to know the APR (Annual Percentage Rate) of the lenders so that you can do a comparison search to get the best rate of interest.

Interest rates will vary. It is also worth bearing in mind that some lenders are only interested in lending to people whom they regard as a 'safe risk' and they will be offered lower interest rates.

A personal loan could be the best option for you if you are looking to borrowing money for between one and five years and is particularly ideal if you have other debts that you're looking to consolidate into one loan to reduce your overall monthly payments.

There are two basic types of personal loan, the secured and the unsecured.

With an unsecured personal loan you will normally make payments on a regular basis to the lender who, if you should default on the payments, would have to take legal action to obtain the outstanding money.

With a secured personal loan, the lender will ask for the amount that you borrow to be 'secured' against a piece of your property, very often your home, which would become the property of the lender in the case of default.

You may freely reprint this article provided the author's biography remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Student Loan Limits Not Keeping Up with Tuition Rates
As tuition rates at many colleges continues to rise, the limits that students may borrow each year has stayed the same.Dependent undergraduates may borrow up to $2,625 their freshman year, $3,500 their sophomore year and $5,500 for each remaining year in Stafford Loans.Students classified as independent from parents, may qualify for additional unsubsidized loans. Dependent students may also receive unsubsidized loans if parents do not qualify for a PLUS loan.Unsubsidized loans can be a double edged sword -- they allow the student to pay for college, but borrowers do not receive the interest free benefit of subsidized loans.There is also cumulative limit of $23,000 for an undergraduate education.The limits on amounts...
Risk It With A Bridging Loan?
How many times have you been casually going about your business, seen a great property and thought, "that would be a really nice place to live"? Then you snap out of it, knowing you can't lay your hands on the money fast enough. Well what if you really wanted this property? You discussed it with the agent, your emotions got the better of you and you made an offer.This has to be a fast sale or the vendor will sell it to someone else, what will you do? How will you find the cash at such short notice? Unless you happen to have thousands of pounds lying around in some b...
Secured Loans Guide
Secured loans are becoming increasingly popular due to their flexibility. Basically, a secured loan is one for which you provide some form of collateral in order to cover the amount borrowed in the loan. A secured loan is a loan on which you as the borrower have provided the lender some kind of security for the money borrowed.With a secured loan, the money that you borrow is secured against all or some of your assets, specifically an item of property that you can prove that you own as insurance for the lender against defaults or non-payment of instalments...
Federal Housing Administration (FHA)
FHA loan programs:FHA AccessFHA Cal GoldFHA Rural GoldFHA Mutal Mtg. InsuranceFHA 203 (k)FHA 203 bFHA 251FHA Title I programFHA MIP RefundThe Federal housing administration was created by Congress in 1934 as part of the national housing act. The purpose of the act, and of the FHA, was to generate new jobs through increased construction activity, to exert a stabilizing influence on the mortgage market, and to promote the financing, prepared, and sale of real estate...
Online Loans: The Easy Way to Apply
The internet is a great place to find the right lender for obtaining a loan. One can apply online by filling out a simple application and submitting it with just a few clicks of the mouse. Online loans, also known as e-loans, are just one more way to make your search for money to finance your purchase easy and convenient.Online loans offer the following advantages:1) The greatest advantage of online loans is that you can apply for it from almos...
To Find The Right Loan You Must First Find The Right Lender
We have found internet shoppers to be the savviest in the mortgage market. Frequently they have submitted their mortgage loan information. After mortgage inquires for mortgage quotes are made by the consumer on the internet the information is then referred to a loan officer who will call them and help them find the right loan for their situation. By doing this internet shoppers gain a competitive...
Secrets & Benefits of Secured Loans
Borrowing money has become more and more popular in the UK over recent years, and this is partly due to the fact that it has become far easier to borrow money. The rising popularity of consumer finance has also been aided by the wide variety of deals and the low interest rates available these days. Secured loans have become very popular with those that own property, and this type of finance deal offers affordability and excellent value for money. Secured loans are available from a wide pool of lenders, which means that consumers have plenty of choice when it comes to selecting and applying for secure loans.The amount available to borrow with secured loans ...
Is a Microloan Right for You?
If you've been tossing around an idea for a small business, but wondering where you'll find the money you need to get started, perhaps you should consider a microloan. Microloans are ideal for getting a new business off the ground. A microloan can also provide an infusion of cash to help an existing small business grow.The term "microloan" refers to a business loan smaller than most banks care to process, often to a borrower no bank would consider. The term came into vogue during the 1980's, as funders began to realize that $200 loaned to a cooperative of women in a third world country could empower tho...
What is an Auto Loan?
An Auto loan is basically another name for a car loan. An auto loan is an agreement between a lender and a borrower in which the lender gives the borrower money and the borrower promised to pay back the amount of the loan and the interest. Auto loans are only offered for the purpose of purchasing a vehicle.Auto loans are the most popular type of loan that people apply for. Auto loans, as the name s...
No Income Verification Home Equity Loan
A no income verification home equity loan is a second mortgage loan that does not require you to provide income documentation to qualify for the loan. This type of loan is great for homeowners who need a home equity loan but have hard to document income.The majority of borrowers with hard to document income are either self-employed or commission based employees. Consumers who fall under these categories may have high income but have a lot of business related deductions that they write off on their taxes. This is good on the one hand as it reduces the taxable income and thus the amount of taxes owed, however, when it comes to getting a home loan it can hurt as most lenders use the average o...
 
 

| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |