If you have a FICO credit score of 660 or above, welcome to the world of personal loans , which can act as your saviour, by extending credit to you with minimal documentation, no collateral, good rate of interest, and fast disbursal. One of the most popular types of loans in the US and also in the rest of the world with good banking infrastructure, personal loans has gained popularity primarily because of their wide reach. There is a personal loan for everyone, well, almost. The interest rates may vary from 5.9% at best to about 36%, depending on the lender and your credit score.
Well, the name says it all. It is so personal, that you do not need to disclose for what reason you are taking it, neither is the bank going to ask you for it, unless you are taking a personal loan to consolidate your debts. Most other loans, like education loans, home loans or auto loans are taken for specific purposes, on which the loan amounts must be utilized. In personal loans however, money is credited to your bank account, and you are free to use its proceeds, in whichever way you want to utilize it.
Generally personal loans are collateral free, which means they fall into the unsecured loans category. Your credit score and credit records provides for the major input for banks to offer you such loans. If a personal loan carries a collateral requirement, then interest payable on the loan would be much lower.
The interest in personal loans is generally fixed. This means you know the EMI and the tenure for certainty. Some personal loans however, carry variable interest rates, where, in the course of repayment of your loan, both the EMIs and the tenure of the loan can vary.
People opt for personal loans for a variety of reasons, like, they may want a home renovation, plan a grand wedding, go for a vacation, buy some gadgets, gift someone or to consolidate some debts.
The first source today is the internet, and companies in the internet can give you really good deals. While you read this, you may find some advertisement which will offer you great rates. Most internet based financial costs have very low cost of operations, which they can pass on to their customers and remain competitive. You can also search for them in Google. The entire application to disbursement process takes anywhere between 24 to 48 hours, and you get the credit. Personal loans from your bank account login panel, if there are pre existing offers, will only take a few seconds to disburse.
The second source is the bank or credit house you already deal with, and which has your bank account. They already have a fair idea of your financial transactions, and they generally have special offers for their customers. Login to your account now, you might already be having an offer from them, waiting for you to click and approve.
The third is doing a quick advice seeking from your friends and contacts, and they are sure to suggest you with some places, along with their competitiveness, ease of disbursement and documentation requirements. Your whatsapp groups may be a good place to start with.
Check the rating sites. A good number of websites rate the personal loan giving houses, along with their pros and cons. A quick surfing at those sites will keep you well informed on the prevailing personal loan market.
Still wondering? Just do quick Google searches below searching for a personal loan at best rates, check the resulting links, and get your loan!