Personal Loans – Explaining Secured and Unsecured Personal Loans

Every now and then some of us may need a personal loan. Running out of cash can happen at any time and that is when a personal advance can come in handy. Personal loans are also known as signature or unsecured advances. This kind of finance can help when there is a need for money and you won’t have to go through a long process or put up your home or car for collateral. Personal loans online can be a convenient way to get this type of financial assistance.

Additionally, personal advance loans can be a good way to get cash that you need right away. They are made for any purpose and do not have to explained as to the reason for needing them in order to get the financing. To be clear, the primary types of personal loans that exist are secured (protected) personal loans and unsecured (not protected) personal loans. An individual loan that is safeguarded by collateral that was put up as surety is secured. In other words, it requires back-up by some kind of financial asset like a person’s boat or even someone’s wedding ring. If there is no repayment, a repossession will be made on the boat or ring or whatever item was used as the guarantee. Check out online personal loans; they are convenient and the process is quick and easy.

A loan, by an individual, that is never protected or backed up by anything is not secure; except by the signature of the person who wants the loan. In most cases, this kind of advance for a person is based on their credit worthiness. In addition, with an advance such as that, that is not secured, there is a higher interest rate and that is because of the additional risks associated with it.

There are several benefits that come with a personal loan: 1) easier to quality for and 2) the process to getting a loan is not as long. It is important to note that there are two main benefits with a loan for person or individual: having a fixed monthly payment and a fixed loan term. Because the interest rate never changes, a person’s monthly payment stays the same. Most importantly, a fixed payment gives a person a feeling of stability; especially when it comes to their monthly budget.

The fixed loan term is yet another benefit that comes with this type of advanced financing. Having a fixed loan term can help a person deal with their overall financial concerns. This can lower a person’s stress and give them a more confident feeling that they can pull themselves out of their financial dilemma.

Personal Loans with Bad Credit

There are options for people to apply for even if they have bad credit. Financial lenders are aware of the many reasons people have fallen into that crevice of a low rating in the credit bureau: loss of jobs, identity theft, the primary paycheck in the family might stop, or starting a new job that causes a late payment to be sent in weeks after the due date. There is nothing like the feeling of security with money in the bank, especially for an emergency. Don’t listen to the rumor mill, clients are approved every day for personal types of loans for bad credit.

To apply for a personal loan takes a few minutes to fill out an application. The lender must know what type of income is being received by the client. It can be social security, disability checks, alimony or a financial settlement. There are personal loans for bad credit that will fit a client’s budget. The financial information is vital for a loan officer to make a determination of how much money they will approve for a personal loan with bad credit. Lenders must be certain that the amount of income received is enough to handle the re-payments of the loan.

Be aware the personal loans for bad credit that are approved might have a high annual percentage rate or APR. Some lenders will help the client by extending the length of time to repay the loan. The lender helps the client with due dates that can be met with ease. Read all the information and ask questions so there is a complete understanding about all aspects of the loan. Remember the lender is there to help the client to secure a personal loan. When the loan is approved the funds are direct deposited in the client’s bank account or a check is sent out through snail mail. The bonus is when payments are made on time and the loan is repaid, the lender informs the credit bureau and that boost’s the client’s credit score. The lender knows the clients history and will offer the client the opportunity to apply for another loan.

Getting Instant Personal Loans With Bad Credit To Clear Your Financial Headache

Financial emergencies are rather unforgiving when it comes to the time granted to get them sorted out. Whether it is a final notice on a mortgage payment or an unexpected medical situation, payments are expected as close to immediately as possible. Thankfully, it is possible to secure instant personal loans with bad credit.

Why thankfully? Well, more often than not, it is a poor credit history that holds up the chances of getting vital funds quickly. So, having the opportunity to receive loan approval with no credit checks is welcome. However, there are some compromises that must be made in order to get the green light, and these need to be considered carefully.

The trick to negotiating the difficulties involved and securing the best possible terms is knowing the key factors in the application process. So, the chances of getting the personal loan instantly are greatly improved.

Is Instant Approval Real?

In truth, getting a loan approved instantly is not quite accurate, and a very quickly approved loan is perhaps more like it. What really matters is that even bad credit borrowers can get the thumbs up from a lender within a matter of minutes and have the funds in their own bank account within 4 hours, so getting instant personal loans with bad credit is no marketing ploy.

The reason lenders can offer such a fast decision on an application is down to a special process where they grant approval with no credit check. This basically means that the mistakes and troubles of the past are ignored, thus saving time.

And of course, the instant approval promise is available from online lenders because the online application form is electronically processed in just seconds. Key information like income, employment status and monthly expenditure are assessed, so the personal loan may be approved very quickly.

Instant Loans Have Limitations

So, what are the compromises that applicants need to accept? Crucially, there is a limit to the size of the loan that can be secured. Getting instant personal loans with bad credit is great, but the lenders face a higher risk of lending to a serial defaulter to make that happen.

In most cases, these loans are limited to around $2,000, but in some cases a lender may be willing to grant more. This protects them against major losses. Another move designed to protect themselves is to charge a higher interest rate. Granting approval with no credit check the normal interest bracket structure is ignored too. Instead, all applicants pay the same interest.

For most, that means paying more (perhaps 2% more) than usual, but some very poor credit borrowers will actually be paying less on the personal loan.

What Deal To Expect

It is important to be realistic when applying for any loan, but especially when reviewing the range of terms and conditions lenders set for those applying for an instant personal loan with bad credit. As well as the normal qualifying criteria, there is the need to have a working bank account. This is to accommodate the electronic transfer of funds.

The most common loan option when seeking approval with no credit check is a payday loan. The terms make it the most expensive loan available, and comes with the pressure of a repayment term of just 14 to 30 days. This is because the loan is repaid in full from the next paycheck.

The APR is typically huge (500%) so it is only manageable if the loan is small ($100 to $1,500), and it leave little over to pay for your normal monthly outgoings. However, with a reliable income source, approval is only a seconds away, and personal loan funds can be available in 3 or 4 hours. So, the emergency can be dealt with almost instantly.

Fulfill Your All Needs With Personal Loans

The lifestyle of urban Indian is rapidly changing. The burgeoning Indian middle class is now the target customers of the major multinationals. With the increase in disposable income in the hands of young India, changes have been noticed in the expenditure pattern. What was the luxury in the nineties, in the 21st century that becomes the necessity. With the increase of sales of brown, white and grey goods, the consumers appliances sectors is also witnessing an unprecedented growth. Needs and dreams come as a part of every-body’s life. You want to buy a refrigerator and you have to save for months to get it. You want to go for a holiday vacation, but then you don’t have enough money to reach your dream destination. You might feel the need to utilise all your savings in buying a new house and now there is nothing left for furnishing it. But nowadays financial institutions can fulfil all your needs by providing loans. Personal Loans in India alleviate most of the hassles that come with conventional loans – delay in sanctioning and disbursement, lots of paper work, necessity of a guarantor and hypothecation of the asset financed.

A personal loan is an all-purpose loan for one’s own personal use. In fact this kind of loans can be used for any legitimate purposes whatsoever. This type of loan is unique retail loan product offered by a number of banks. In India the personal loans can be of two forms – secured and unsecured. Both secured and unsecured loans are provided by banks to its esteemed customers. The main purpose of such a loan is to meet any kind of need or expenses.

There are various types of personal loans available in India. These are Festival Loans, Marriage Loans, Pension Loans, Consumer Durable Loans and Personal Computer Loans. Festival loans are a type of personal loan in which a very cheap interest rate is being offer. This cheap personal loans interest rate is very convenient to those people who want to have a small loan which they can repay early but do not want to pay interest at the exorbitant rates. This kind of loan is given from the amount of Rs. 5000 to Rs. 50000 and the loan is generally restricted for 12 months. Consumer durables loans are the unique loans which attracts more customers. Right from Television to Refrigerator to Music players, you can buy anything. The quantum of these kind of loans vary from bank to Bank. However, most Banks offer loans from the amount of Rs. 10000 to Rs. 100000. Marriage loans are gaining popularity nowadays in both rural and urban areas. In this kind of loan the maximum amount depends on a few criteria like repayment capacity of the borrower, security/collateral offered by the customer, age of the borrower etc. Pension loans is a term loan which is available to pensioners till the age of 70. The maximum amount of pension loan sanctioned is normally 7-10 times of the amount of last pension received. The amount is generally vary from individual to individual depending upon his repayment capacity. Finally, with the huge booming of Information Technology in India computers have replaced manual work in every sector. With the growing demands of computers the concept of Personal Computer loans have come. Under this category of loan, Banks provide a loan up to Rs 100000 for computer hardware and software. On the other side there are some banks which provides a separate software loan to a maximum of Rs. 20000.

There are several banks in India which are much popular among people when it comes to personal loans. Some of these Banks and their offered personal loan schemes are State Bank of India – Loan For Personal Expenses, ICICI Bank – Available Loan For Personal Use, HDFC Bank – HDFC Bank Personal Finance, Bank of India – Star Personal Scheme, Bank of Baroda – Baroda Personal Financial Offer, Standard Chartered – EMI Refund Program Scheme,IDBI Bank – IDBI Personal Expense Finance, HSBC Bank – Smooth Personal Loan Repayment, Development Credit Bank – DCB Personal Vantage Plan and United Bank of India – United Personal Schemes.