PERSONAL LOANS GUIDE

These are small loans used for personal reasons. They are based on credit, employment, collateral, co-signer or financial care. Usually from 1 to 6 years with simple interest. Getting tailored the right program can help you structure your project better. This will make you score the right goals for your success.

DEFINITION:

Personal Loans: A lump sum of capital will be loaned to the individual as a service for a payment of interest. The interest charge for the loan is calculated annually and paid monthly. The interest of the loan is calculated based on risk and is usually based on credit, financials, co-signer or collateral among other factors.

These are some characteristics of Personal Loans:

Time Periods: Usually these loans are for time periods of 1-6 years.

Payment of Loan: You pay monthly principal and interest for the life of the loan.

Prepayment Penalty: usually these loans are calculated as simple interests. You may pay them anytime without penalty.

Interest Rates: the interest rates are calculated based on risk of borrower. The lower the risk is, the lower the interest rate. The loans are small so interest varies from 6% to 18% and can be higher on high risk loans.

Credit Categories

NOTE: We take the mid-score as the main credit score.

TIMEFRAME

The time for personal loans depends on credit and risk. They can be funded in 1-3 business days or in 1-3 weeks. In addition to the credit, financials, employment and collateral, it also depends on how fast the borrower provides the information to complete the loan cycle.