Credit is one of the options for getting additional funds, be it for buying a new item, for repairing or just for a living. One of the most advantageous and best forms of credit, especially for fulfilling one’s dreams, is a personal loan, because it can be obtained for many purposes from repairs to travel, and is one of the most popular lending services that people do everyday. choose to receive both from Banks and private creditors.
A personal loan is, by its nature, a short-term credit granted by banks and other credit institutions
This type of loan is granted without a pledge or any other security and does not require an explanation as to who the money will be spent on.
A collateralized consumer loan can be taken for a period of 3 to 60 months, which usually depends on the bank or private creditor with which the loan is taken and the amount the borrower is able to repay each month. So, the smaller the monthly amount the borrower or debtor repays, the longer the loan repayment period will be, and of course the higher the amount you will overpay on the loan.
There are many different ways to take a personal loan online
From recreational trips or tours, to buying electrical or household appliances, paying tuition or medical fees, down payments and even rent, buying a new home or car, and other less popular reasons. That is why this type of credit is most chosen by people, because it is very flexible and can be applied to almost every need of life.
There are two categories of consumer loans:
- Ordinary Personal loan, or credit with the Bank – this credit can be obtained by going to the bank or credit institution and filling in the necessary documents and forms there;
- Online Personal loan – This type of credit is probably more enjoyable for many, as you do not need to go to a bank or other institution to borrow, you can simply settle online and get the money you need right away to buy your desired product or pay for something service.
The thing to keep in mind for anyone who wants to borrow this type of short term or long term loan is that this is not all just a quick loan, but a real loan that puts the serious prerequisites to getting it at all.
Banks usually look at the potential customer’s credit history and solvency before deciding whether to grant the credit
But it is for this reason that every potential customer is screened that it is possible for banks and credit institutions to lend much larger amounts, for example South Bank lends Personal loan up to 12 thousand euros, but most other banks up to 10 thousand, which means you can take out a loan and make a bigger purchase with that money, and it will have better interest rates than any other type of credit, including quick loans.
More specifically, Personal loan rates tend to range from 10% to 40% per annum , and although more than mortgage or other types of loans, it should be remembered that this loan can be obtained without pledge and guarantor, and it is still much less than short term loans.
For individuals, a personal loan is one of the easiest and most cost-effective services, and it can pay for almost any expenditure you can think of!