No
matter how financially stable you are, as the prices of each and every
commodity is skyrocketing at a very high pace, many a times you feel
that your savings are not enough to fulfill your needs or desires.
Fortunately, this is now possible through a loan. Loan is a debt which
the borrower gets from the lender; and he has to return it to the lender
within a specific time at that to with some interest on it.
Different
types of loans are introduced in these days; some common types are
personal loan, student loans, car loan, business loan etc. Further these
loans are classified as, secured and unsecured loan. A secured loan is
the loan where the borrower vow some chattels as the guarantee of the
loan, whereas unsecured loan is one where there is no collateral, loan
is given only on the base of borrower creditworthiness. This article is
an attempt to make you familiar with the basically two types of loans,
personal loan and car loan.
Personal Loan
It
is actually the ready money offered to the borrower, so that he or she
can accomplish his or her dreams. There are two types of personal loans
available; these are secured personal loans
and unsecured personal loans. Although the eligibility criterion to get
the personal loan varies from lender to lender, however they are
broadly classified into 2 segments, salaried and self employed. Salaried
includes teachers, government employees, private company employees etc.
The
self employed category includes doctors, and chartered accountant etc.
As everything now becomes tech savvy, even taking loan has not remained
untouched, you can easily apply for these loans online, which will save a
lot of your time. Some of the lenders have also come with the loans for
those who have bad credit history, called as bad credit personal loans
these are for the people who have made some mistake in the past with
their finance and now want to rectify it.
For getting personal loans
you require some documents to make sure that the borrower is genuine.
Documents which are required or identity proof, address proof, salary
slip (for salaried), most recent bank statement etc. As far as the
interest rates are definitely concerned as this is an unsecured loan you
have to pay higher interest rates, the interest rate can vary from
14%-25%.
Car Loan
These
loans are meant for those who want to finance a car for their personal
use. A car loan can allow you to get a car for instant use and swap over
these for regular payments over the settled period. Going for car
financing, has a number of advantages and disadvantages also, on one
side you get a car immediately and on the other hand you fall in the
trap of debt. To be secure in your future it is very important that you
should select a car financier carefully. While going for a car loan,
don’t forget to check
Is it possible to arrange the payment to suit your needs or not.
Are other costs such as registration fee, road cost, insurance are also financed in the loan contract.
What is the duration of repayment is it monthly or fortnightly.
For
finding the best car loan, it is always recommended to do some
research, look for rates of different bank, compare and then choose the
best one for you.
