Types of Consumer Loans
- Personal loans
- Auto loans
- Credit cards
- Student loans
A personal loan is a type of loan that is issued by financial institutions which is not secured by any collateral. Steps on How to Apply for the Loan, How to Qualify for the Loan, The Repayment Process.
This unsecured loan is mainly borrowed to cater for any emergency financial needs a person may have. Financial institutions investigate your borrowing history and your ability to repay your loan for them to qualify you for the loan.
Reasons To Acquire Personal Loans
Here are some of the reasons you may need a loan;
Personal Loans help improve your borrowing limit so you can get a higher amount the next time you want to borrow.
Personal Loans help create a business as a side hustle.
Personal Loans help finance emergency situations.
Personal Loans can also be used to repay credit card debts.
How To Qualify For The Personal Loan
A person must have a minimum borrowing limit score of 640 to 750 to be able to qualify for this loan. The interest rates of such loans range from 8.5 percent to 18 percent depending on the amount of money borrowed, as well as a person’s borrowing rating. Their debt-to-income percentage should be around 45 percent and below based on their loan amount, their borrowing rating, and their income.
Guide To Access Personal Loans
When an individual faces shortage of money or sudden emergencies he takes personal loans. These problem are faced by almost all of us such as paying bills, buy homes, tuition fee etc. and we need excess money. That is where banks and companies come in to give us personal loan. Two party’s terms and conditions are involved in these loans, one is lending and one is borrowing. You get different rates accordingly to the type and amount of loan you opt for.