Important Facts About Quick Personal LoansPosted by: Benson Palmer | Posted on: June 2, 2017
According to the popular Don Dinero Financial services, the term ‘personal loan’ has entered our life in many ways. Similarly the experts at www.bankrate.com state that there are several things to be considered before taking up a personal loan. Still many of us do not comprehend the distinction between various sorts of loans that we can avail of, nor do we know how these loans function. This is valid in the event of personal loans too. Hence it is better for all of us to understand the nuts and bolts before availing such loans. For the benefit of the readers a few salient points are discussed here as follows:
Key Points To Remember While Availing Personal Loans
- Interest Rate
The interest rates offered by various financial institutions such as banks, have to be checked by the borrowers. In general, such rates vary from 12% to 18% according to the policies of various banks.
- Loan Tenure
Personal loans are given for short periods, varying from 1 year to 3 years. This type of loan is known as unsecured loan as the borrower need not offer any collateral security. The loan tenure is decided by the lender as well as the borrower according to the mutual convenience.
- Processing Fee
A lender charges this fee in order to process the loan and the same amount will be deducted in the loan amount if the same is not paid by the borrower at the time of sanctioning the loan.
The equated monthly installments are nothing but the monthly payment which includes principal as well as interest amount.
- The Condition Of Pre-Closure
A borrower has to be aware of the conditions in which he or she can pre-close the loan in order to minimize the interest or the cost of the loan.
- Choosing The Bank
A borrower has to choose the lending bank as per his or her choice. Many public sectors or private banks offer personal loans to the potential borrowers according to their monthly incomes.
While going for higher amounts through personal loans, one can also insure the product for which the loan was availed. This will ensure a good protection for the borrowers when the product fails during the guaranty period.
Positive Features In These Quick Personal Loans
True to the name these quick cash loans are undoubtedly quick to reach the borrower as these loans are generally approved within few hours after getting the details of the borrowers. In most of the cases, these loans are disbursed within twenty-four hours as the entire process of sanctioning happens through online.
Of course one can even approach the lender in person too if the place is located nearby to the borrower. Still, online method works faster than the personal contact due to various logistic reasons. Loan are sanctioned and given to the needy persons based on his or her monthly earnings. These loans could be secured or not secured as per the decisions of the money lenders. In the case of secured loan where the borrowing amount is considered to be very high, lenders may need some collateral securities such as house land or even gold bond, etc.