Thinking to buy a luxury car or thinking for going abroad or worried about children marriage. Is one of them is your dream. Everyone in this world see dreams. But along with the dream they also have a fear that might be dream may not come true!! And if your fear is just because of finances then personal loans can help you out.
Basically, Personal loans can be acquired in two ways
• Secured personal loan
• Unsecured personal loan
Secured personal loans are generally taken on large amount. It can be taken only against any asset given as collateral. Ownership remains with the borrower itself. In case repayment is not made on time the lender has the legal right to liquidate the asset to recover the money. On the other side unsecured personal loan does not need any collateral against loan. It is taken on smaller amount.
On evaluating both sides of coin. Secured personal loan offers less rate of interest as compared to unsecured personal loan. As the lender feel secure on the part of repayment of loan amount. And also the repayment period of loan is longer in secured personal loan.
Secured personal loan can only be taken up by asset holders. While unsecured personal loan is opened for both tenants and asset holders. The only difference that matters is whether secured or unsecured personal loans suit your needs and requirements.
Personal loans are provided by
• Financial institution
• Building societies
• Online lenders
• Other lending companies
These lenders provide loan at convenience of borrower.
Generally seen people get confused in making choices between various lenders. The best way is to compare not only the interest rate but also the other cost involved that is loan arrangement cost. Interest charged can be from 6% to 17%. The interest rate may vary from person to person depending upon the needs and prevailing market.
Credit score also plays a key role while applying for personal loan. The person with bad credit history can also apply for the personal loan in order to improve the credit score. The drawback which the person of bad credit history has to face is high rate of interest.
Personal loan can be used for many purposes
• Buying a new car
• Debt consolidation
• Higher education
• Going abroad
• Home improvement
• Many more
Hence, personal loan make your dream come true on easy terms and conditions. With, personal loan just dare your dreams.