What is a personal loan?
A personal loan is, generally speaking, a loan intended for personal use. Typical uses for personal loans include funding large purchases (e.g. home appliances), holidays, further education, debt consolidation, etc. There are two main types of personal loan: secured loans and unsecured loans. Here we take a look at what they mean, and the pros and cons of each.
A personal loan is an amount of money which you borrow from a bank, building society or some other lender. Ordinarily, 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.
: John Mussi A Personal loan can be divided into two categories: secured personal loans and unsecured personal loans. Homeowners can apply for a Secured personal loan (using their property as security), whereas tenants only have the option of an unsecured personal loan . Below is a more detailed outline of both types of loans: Secured Personal Loan: A Secured personal loan is simply a loan that is secured against property. Secured personal loans are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured personal loan; or, have a poor credit history. Lenders can be more flexible when it comes to Secured personal loans, making a Secured personal loan possible when you may have been turned down for an unsecured personal loan. Secured personal loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime. Benefits of Secured personal loans include: Lower monthly repayments t
A personal loan is an amount of money that you borrow from a bank, building society or some other lender. Ordinarily, 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.
