Personal Bank Loan
A personal bank loan generally takes in 2 forms, secured and unsecured. Secured loan is borrower pledge a valuable assets like house, car or property as collateral to lender. While, the unsecured loan is no collateral required. So the interest rate of secured loan is lower than unsecured loan.
But there is risk for secured loan, if borrower defaulted the payments, they might lose the asset pledged. For unsecured loan, no assets going to be lose but borrower's credit score and reputation will be seriously affect. Some lenders may sue borrower who defaulted payments if the lending amount is great. And this may lead borrower to bankrupt.
Tips for acquiring a respectable rate on a personal loan
1) Check on your credit score, before applying any loans take a check and there is an opportunity to fix any errors on your credit score. Although good credit rating is not concerned when applying personal loan, but if good credit score always get a better rate.
2) Shop for numerous lenders / banks, all personal loan rates are vary for each banks. Finding more lenders allow borrower to view various terms and benefits from lenders and choose the best one.
3) The options of the loan always come with variable rate and fixed rate. For personal loan, is better to take a fixed rate option. This will keep the payment from rising unexpectedly.
4) Never forget to read, understand and make all fine print on upfront fees and for terms and conditions of payment.
For more information about personal loan, please take a look on Personal Loan Guide instead of Personal Bank Loan
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