Personal loans can be as small as $250 or as big as $5,000. The best thing about them is that you can use the money for whatever purpose you want. Most people resort to personal loans when they need money. There are two essentially two types of personal loans. There are unsecured personal loans and secured personal loans. Secured personal loans would require you to put up collateral as security for the loan. On the other hand, unsecured personal loans do not require any collateral but they tend to have high interest rates.
Today, there are more places where you can apply for a personal loan. As opposed to years before when you can only get a loan from the bank, you can also get a loan from credit unions, peer to peer lending networks and online lenders. The loan application process has also been cut shorter. If you apply online, all you need to do is fill out the application form and submit it. A representative of the company will get back to you and give you further instructions as to what documents you need to submit. Most people who apply for loans online get their money in as little as 24 hours. However, the process will vary from one lender to another.
One of the first places people go to when they need a personal loan is their bank. Your banker can help you get a loan. This is one of the reasons why it is very important to have a good relationship with your banker. Some of the things you will need to consider are the loan rates. Should you get a fixed loan rate or a variable loan rate? What are the loan fees aside from the interest? Will you be willing to offer collateral?
You can also get a cash advance from your credit card. However, experts say that this is not a good option. Credit cards tend to have higher interest rates compared to other sources. You can also try friend and family.