Personal Loan
Personal loan is a loan granted for personal use established by consumer credit. It is usually unsecured and does not require any form of asset to be use as collaterals.
Loan amount
The amount granted is determine by individual’s credit rating given by the lenders. The range of the maximum personal loan amount varies for lenders. Banks tends to have lower cap on the amount.
Interest rate
Personal loan usually works in a fixed interest rate model. However, some lenders imposed a variable interest rate for personal loans issued. Interest rate is determined by individual’s credit rating given to the borrower.
Repayment period
Personal loan are given a fixed repayment period ranging from 12, 24, 36, 48, and 60 months. Longer repayment periods helps to lower your monthly loan repayment, but they also mean the borrower has to pay more in interest than if you had a shorter repayment period. Your interest rate may also be tied to your repayment period. For example, you may have a lower interest rate with shorter repayment periods. There may be a penalty for paying your loan off early.
Applying for a Personal Loan
Apply your loans only from licensed money lenders and only borrow what you can afford to repay.
