If you are looking for a personal loan, it is likely you have tried your bank or credit union. However, your bank might not be the first choice if you want fast cash because of the lengthy approval and background checks. Most consumers find themselves classified as risk borrowers either due to poor credit or low income. As banks continue making life harder for consumers, the internet now offers an easier option to get cash faster and at better rates.
Personal online Loans are now popular because they offer a lot of convenience. You can apply from home and there are many lenders offering competitive rates. If you are struggling to get approval for a personal loan from your bank, it is time to try the online platform. The industry is now regulated and due to the competition, the interest rates are lower than those offered by traditional lenders.
As with all online services, there are myriad loan variations to choose from based on your unique needs. Some of the loan products you will find online include:
- Payday loans: This is also called a cash advance and it is designed to help you meet any cash fall before the next payday. Online loan providers offer fast cash options to guarantee you get the cash within the same day.
- Secured loans: This loan requires collateral such as property as a guarantee. The lender wants to reduce the risk because this industry is fickle. The interest rates are lower but you could lose your asset if you default.
- Signature loans: This is a type of unsecured loan where the only guarantee is your promise to repay. Such a loan requires good credit rating and a steady income. The repayment is through fixed monthly installments.
- Variable/adjustable personal loans: This type of loan has an interest rate thatchanges throughout the life of the loan. When rates go up, your installments are adjusted and when they fall you enjoy lower repayments.
- Fixed-rate loans: These loans are less risky for consumers because the interest rate is fixed irrespective of the market trends. You will pay the same monthly amount through the life of the loan.
- Student loans: If you are planning to join college or further your studies, a student loan will go a long way in making your life more comfortable. The loan will help you cater for your tuition and accommodation. While there are government student loans available,the money might not be enough to cater for all your needs. An online lender will provide a tailor-made financial product that suits your unique needs.
- Credit card loan: This is the most common type of personal loan though most people don’t realize they are actually borrowing. Your credit card might not offer you a lump sum but every time you use it, remember you will be borrowing and that’s the reason there is a credit limit.
Personal loans can be used to offset any type of financial need. Whether you want to pay for a vacation, renovate your home or pay education fees, you can easily find the best interest rates on the internet.