The market for loans is huge and extremely competitive and there is a customized loan for every kind of loan. There is a home loan for buying a house, a car loan for bringing home the selected car and a special loan for meeting the requirements of any kind of personal need. These loans are both unsecured and secured. Only some lenders render the loans taken for personal reasons, as unsecured, where there is no collateral involved. But, lack of collateral or security often metes out high-interest rates in the borrowing terms of the loans. This again makes the secured loans a viable option as they have a very low interest rate. This means that a security is responsible for approval of these loans and thereby the interest charged is less.
According to the needs and requirements of the borrower, he can apply for any one of the above kind of loans. The amount offered as loans for personal reasons is always dependent on the collateral which is offered, in case of secured loans. The loan term extends from 1-25 years. The unsecured loans range from 5 to 10 years. With unsecured personal loans, there is no need to review any collateral.
The Uses
Personal loans are taken for various reason and the uses of these loans are endless. There can be umpteen number of uses to which the personal loans can be put to:
- Pay off Credit cards
- Pay Medical Bills
- Home improvement
- Weddings
- Vacations
- Debt consolidation etc
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