Monthly Archives: March 2017

Features Of Short Term Personal Loans

Among the various types of loans available in the market, the most popular one is personal loan that is borrowed by a person for a stipulated period of time and hence is paid in full in installments with interest, until the loan repayment is not complete. Personal loans are therefore also known as installment loans.

A person credits a personal loan for variety of reasons and the most prominent one for seeking a loan, is home improvement or debt consolidation; to buy a big commodity as a house hold item or planning a trip for one’s family. So a personal loan can bring all your instant need for the cash into reality and fulfill the demands kept for long on pending due to insufficient funds.

The other benefit for personal loans is that you can have them instantly now- a- days online; these loans with ample flexibility in most of the cases are generally approved within 24 hours after applying for them. Under the personal loans there is a short-term personal loan that is a quick method to arrange cash advance loan for a number of requirement and needs. While judging the criteria for approving a loan, a lending agency looks into the proper occupation and steady income source and capacity to repay loan within the scheduled period into an applicant’s application.

There are two types of Short term personal loans that a person can secure from loan lending agency in particular, thus the short term personal loans provided on the basis of availability and security are secured and unsecured short term personal loans. In a secured short term personal loans you are expected to register one of your assists as collateral to provide you with short term personal loan at lower rate of interest and flexible payment option. In the unsecured short term personal loan there no collateral is required for the loans, instead a lender levies higher rate of interest in order to cover up risks in this type of loan. Keeping other factors aside the rate of interest for short term personal loan is generally kept higher in comparison to other types of loans.

However, amount for short term personal loan is quite debated between different lending agencies. Generally, the maximum amount is qualified on the basis of an applicant’s capacity to repay the loan and the rate of interest is generally kept around 8 percent per annum. There are also a number of companies that provide short term personal loan for variety of requirements like auto and other loans.

Personal Loan Insurance

I have had an experienced cash crisis recently. I was thinking to borrow some money then from a friend or relative of mine, but I dropped that idea. I seldom request anybody to lend me money or any thing like this. Cash withdrawal from credit card could have been a better option instead. However, I instantly dropped that idea too as borrowing charges from credit cards were high enough because of high rate of interest (normally up to 3% a month) after expiration of a fixed period, say 50 days. Finally I’ve decided to go for a personal loan because it was fast in approval and hassle free.

A personal loan is a great option to have your funds for consolidating your debt and you can take personal loan to further your higher education, repairing your car, or even taking up a vacation.

You may know that personal loans, just like credit cards, can be secured or unsecured. Secured loans are often much riskier because you may have to ensure the repayment of the loan by providing the lender with collateral security. If anyhow you fail to meet that repayment, the lender will legally repossess your property, vehicle, or what ever asset you used to secure the loan.

But don’t be worried thinking about the failure. Personal loan is still a better option and offer plenty of opportunity for individuals to improve their overall financial condition. But you should develop a habit of good money management skills. However, certain inevitable incidents in life can changed everything and you may not have control over those things such as unexpected death of the lender, loss of employment, or becoming a disable person.

Skipping the first issue of unexpected death of creditor, rest of the things can affect our ability to repay the personal loan. If that loan is of a secured type, you may lose your asset as well, being a collateral security.

Now to protect yourself against all those probabilities, you should consider purchasing a personal loan insurance. Being an insurance guy,I would suggest you to actively consider the insurance option.

I personally feel that personal loan insurance is the best protection you ever have for repayment of the loan and ensures you to have a peace of mind during the repayment term if opting for a secured one. The cost of such insurance, however varies and is generally determined by the outstanding balance of your loan amount. The type of personal loan insurance coverage will also affect the premium too.

There are three types of personal loan insurance coverage to choose. For Americans, the specific dollar amount of coverage will depend on the laws in your State and the dollar amount of your loan. But I always suggest you to discuss the matter regarding your personal loan insurance with your lender.

Personal loan death insurance will pay up to a certain dollar amount in the event of death of one of the individuals on the loan. In that case, the nominated person on the policy will be paid in full up to the maximum dollar amount or assured amount. Personal loans generally have a maximum loan amount of $15,000 in the USA.However it is not uncommon for individuals to take out more than that.

Disability Plus personal loan coverage is such type of coverage that most often be purchased for personal loan protection. It will pay you the monthly personal loan repayments(EMI) up to a certain dollar amount. Additionally you will receive a cash payment for a percentage of your loan amount each month to help you with the cost of living expenses.

Involuntary Unemployment Coverage Insurance for personal loans is very popular. This type of insurance will pay you up to a certain dollar amount per month in case your are being laid off.

You may be aware of the fact that personal loan is a great financial tool when you use it properly. Personal loan insurance is a very reliable option to help you ensure to continue your repayments regardless of medical issues, unemployment, or death. And this type of insurance is especially important for individuals with a secured personal loan. Not having a personal loan insurance will create a kind of situation where, not only your credit score will be negatively impacted, you would be end up losing your valuable collateral assets that are tied to your personal loan.

A Loan For All Times

Today in this fast paced life, money is needed almost to meet every kind of needs. But every day is not always destined to be a good day. Similarly, it is not possible for every person in this world to have sufficient money with him always. Sooner or later, he will definitely face a situation where he will be short of required money. At that time, the same person will get confused and will try to postpone his needs up till that time when he has ample money with him. But what the same person will do when his demands or financial needs would be urgent. Thus to save people from facing these situation, Personal Loans have been conceptualized.

“Unsecured Personal Loans”

These loans are the kinds of loans that are generally meant to meet personal causes. However, this is not a big issue as the borrower can avail these loans for any legal reason. They will not be required to specify the reason to the lending authorities. These loans can be further classified into two categories unsecured personal loans and secured personal loans.

Talking about the secured personal loans first. These loans are of secured type in nature. In other words these loans require the loan applicant to put any off his personal asset whether home, land or any other valuable property with the lending authority as a security. This security is a sort of guarantee to the lending authority that their money will be recovered in case of any default of installment made in the behalf of the loan aspirant. These lenders on these kind of loans generally charge a reasonable rate of interest. The repayment period too in these kinds of loan is also very long. This is done to ensure that the borrower does not face any problems in the repayment of loan.

The other kind of personal Loans such as unsecured personal loans. These loans are the loans which any borrower can avail without going through many legal hassles. Also these unsecured loans do not require any kind of pledged security. However, these kinds of loans carry a higher rate of interest than the secured counterparts as the interests of the lender are in a far dangerous position since there is no involvement of any security. These loans are great options for those who do not want to risk their intangible or tangible assets while availing the loans. Such people may include tenants, non property owners. Also these loans are best suited for the people who are suffering from bad credit history. But here it is important to understand what actually is this problem of bad credit history.