A Personal loan is synonymous to ‘freedom’. Use it the way you want; be it a lavish holiday, a new computer, buying that dream gadget absolutely anything at all.
Now, to specify personal loans can be of two types:
Secured personal loans: A secured personal loan is taken by pledging a property. It guarantees the lender of getting his money back. This property can be real estate or you house.
The prospective benefits of a secured personal loan are;
• Low interest rates
• Flexible repayments
• Smaller monthly instalments
• Easy to avail
• Can borrow a larger sum of money
Unsecured personal loans: a personal loan that is Risk-free. You do not pledge a security; hence you do not stand to lose if you are unable to repay. However, you might face an arrear or CCJ, but the risk of losing your home or property is not attached.
The prospective benefits of an unsecured personal loan are;
• Can be approved quickly
• Lesser documentation and paper work
• No risk of losing your property
You should prioritise your needs; think about the positives and negatives of both the types and then finalise on the loan that you want. Prioritise on the amount and repayment terms; how much would you be able to pay every month and how long would you like to pay. All this would help you choose the right loan for your personal need.
