Want to renovate your house or want to buy that car for your mum? A lending institution can help you with the finances by way of a consumer or private loan. The interest rate, term of loan, amount, total amount payable, etc, are all dependent on the lender, so these details need to be discussed with the particular institute.
What is a Consumer Loan?
A private/personal/consumer loan is a loan taken by an individual to cover his personal debts in regards to consumer items or some other personal items. As said above, a private loan can be borrowed from the bank or an individual lender, which could even mean a financing house. Consumer loans are different from commercial loans, which are used for business purposes or a mortgage loan which is used for home purchases. Also, private loans can be calculated on a daily basis, as opposed to the annual calculation in commercial loans. Thus, private loans can be paid back anywhere between six months to ten years. There are two kinds of consumer/private loans:
Secured Loans:
Secured loans mean that the loan is given against the security of your personal assets. That means, in case you fail to pay your loan amount, the amount will be settled against the security asset. These kinds of loans have a lower rate of interest than unsecured loans.
Unsecured Loan:
Unsecured loans mean loans that are not secured against any asset or collateral. So that means, in case you fail to repay the loan amount, then your assets will not be touched. Such loans have high interest rates, though, to counter the fact that there is no security. Unsecured loans depend upon your credit history and employment records and status.
• What do I need a Private Loan for?
• To buy a car or a boat
• To renovate your home
• Loan for a manufactured home
• Home equity loan
• Signature loan
• Signature line of credit
• Recreational vehicle loan
• Home equity line of credit
• Share or certificate deposit
• Stocks and mutual funds
• Repayment of credit card debts
• Bank overdraft
• School tuitions and college fees
Rate of Interest
Rates keep changing all the time with the market conditions, so it would be advisable to do a little research maybe on the internet or you can directly contact the bank or financial institute. Also, rates depend upon the amount borrowed and whether the rates are variable; this affects your monthly instalments, too, as the rate keeps changing. Fixed rates are higher as they have the advantage of not fluctuating with the market rates and you don't end up paying a very high amount.
Applying for a loan and working out all the details can be quite a tedious and stressful job, but the right lender can make this task very easy and quick. So, if you are looking for a financial company that offers consumer and private loans, you could consider the name Fuss Free Finance. Please check out their website at http://www.fussfreefinance.com.au
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