Your Simplified Guide for Understanding Personal Loans Better!

Check this quick facts before applying If you are dealing with numerous smaller bills and credit card payments, it is wise to take a personal loan to consolidate everything. A personal loan, otherwise also known as a salary loan, is like a small advance, offered by the lender, usually for a very limited period. Check these aspects below before you apply.

The first facts

Personal loans can be secured and unsecured. As most of us know, a secured loan has a collateral asset. In case the borrower fails to pay the amount, the lender will use the collateral to get back his money. Since the risks are limited for the lender, secured loans are approved quicker and don’t have a high interest rate. As a borrower, you will be more interested in an unsecured loan, which doesn’t have a collateral asset, but comes with a higher rate of interest. In both cases, you need to be of certain age (typically 21 or older) and must have a stable source of income. In the Philippines, Overseas Filipino Workers can also apply for an OFW loan, which can be a personal loan or a long term loan. If you stay outside the country, you need to be present while applying for salary loans.

Things to know

First things first, personal loans are meant for short term needs, and if you don’t want to impact your credit score, you should always repay in time. As with any loan, the lender has the complete authority to approve or reject your application, although it is easier to get such advances as the amounts are much lesser than a home or an auto loan. You can apply for a salary loan, even without a credit card, but those who have one will get quicker approvals. The terms and conditions are typical in most countries, but it is best to follow the norms. Also, if you have the money, you can repay the loan quicker, but must pay the full amount along with the interest.

Learn to compare

Most borrowers have their confusions while applying for a personal loan. The best idea is to check online. There are some amazing portals, where you will find numerous details about such advances, along with side-by-side comparison between different options. The interest rate might be your first concern, but don’t always settle for the lowest rate, until you have checked the other things.

Check online to find the best lender for salary loans now!