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.
Military members the price for serving your country and defending... Read More
Locating the cheap personal loans that you're looking for isn't... Read More
Sometimes it might seem as though finding good loans UK... Read More
Secured loans are becoming increasingly popular due to their flexibility.... Read More
Living in a rented apartment since long. Ever thought of... Read More
Online payday loans seem to be popping up everywhere. A... Read More
Like most people, you will probably wait until submitting a... Read More
A college loan has given people all over the United... Read More
On average, homeowner households earn 95% more than renting households... Read More
How good would it have been had there been no... Read More
The term unsecured loan relates to a loan which is... Read More
It can seem impossible at times to get bad credit... Read More
Trying to find a good homeowner loan UK can end... Read More
A second mortgage is a loan that is secured by... Read More
Looking for a cheap personal loan can sometimes be a... Read More
A UK Home Improvement Loan Can Give You The Home... Read More
Every time you go for a loan, the bad credit... Read More
Because it can sometimes be difficult to find a UK... Read More
The opportunity to spend money is everywhere. There is no... Read More
Payday loans have many names -- cash advances, signature loans... Read More
A payday advance is a loan obtained to cover unexpected... Read More
There are many benefits in choosing a business loan, some... Read More
Poor credit doesn't have to stop you from getting a... Read More
There is more than one type of loan. Depending upon... Read More
Financial fraud and identity fraud are one of the fasted... Read More
Worried about how to apply for a business loan? Although... Read More
You need to be wary of guaranteeing a loan. What... Read More
An unsecured loan is a personal loan where the lender... Read More
So you have never taken out a loan? You don't... Read More
No one can say for certain where the history of... Read More
Some weeks it feels like you're living hand to mouth.... Read More
If your home business is starting to overflow from the... Read More
If you're in the process of trying to find a... Read More
Here are some useful tips on Personal loans. You can... Read More
Here is a useful guide to personal secured loans. A... Read More
When looking for loans online, you might find yourself wondering... Read More
In this second installment, we will further examine what kinds... Read More
Applying for a payday loan online is a quick and... Read More
You can get a payday advance with cheap rates and... Read More
Refinancing your loan is one of the best kept secrets... Read More
In recent years obtaining loans online has become a new... Read More
Laws have been created to protect people against "Loan Shark"... Read More
Car loans are easier to get by using an online... Read More
Student loan debt is a problem that affects many former... Read More
In his 1968 seminal novel, 2001: A Space Odyssey, Arthur... Read More
Secured loans have become very popular over recent years, with... Read More
Here is a useful beginner's guide to bad credit secured... Read More
Motorcycle loans for military with bad credit aren't hard to... Read More
A second mortgage is a loan that is secured by... Read More
If you invest in real estate, you need cash to... Read More
If you considering using a Cash Advance Payday Loan service... Read More
Listed below are some of the reasons for choosing a... Read More
Financial fraud and identity fraud are one of the fasted... Read More
A secured loan is a personal loan which is generally... Read More
No matter what your credit history is the simple fact... Read More
A business loan is designed for a wide range of... Read More
As tuition rates at many colleges continues to rise, the... Read More
A Personal secured loan can offer many benefits, some of... Read More
A college loan has given people all over the United... Read More
Here is a useful guide to business loans. Business loans... Read More
How do you finance a growing practice? It is impossible... Read More
Market research of UK's cosmetic surgery ascertains the fact that... Read More
Factoring has been practiced for centuries. The Romans sold promissory... Read More
Need funds to startup or expand your business? Follow these... Read More
As the term implies, Personal loans are simply loans for... Read More
Bad credit is like an ongoing battle for many loan... Read More
Loan |