Personal Loans: Everything you Need to know

There couldn’t be any difficult situation than not having the money when you need it the most. There might be times when you need your house repaired, you car repaired, you badly need funds for a vacation or you are just basically short of funds for your everyday needs. 

You can opt to have a personal loan that will solve your financial problems. Personal loans are quite similar to any other kind of loans available. You borrow a certain sum of money from a financial institution so you can spend or pay for something you want. You will have an agreement with the lender to pay back your loan in different choices of repayments..

Substantially, personal loans will enable you to fill a short or long time period need for finance. You can apply for a loan from a money lender who then determines your capability for the loan and if you will be approved, the financial institution will send you the amount of money that you were approved for the loan. Your repayments will be consist of the main amount of the loan plus other fees and interest rates. 

6 simple steps on how to get a personal loan

Personal Loans have flexible repayment plans and basically no collateral is needed. Here 6 simple ways on how to get a Personal Loan. 

1. Know what you need

Know why you want a Personal Loan and how much you want to avail. This will depend on the amount of money you need to suffice the expenses of what you want. If you do not need that much amount, it will be better for you just to borrow what is enough because you might have a hard time paying it off in the future.

2. Find out if you are eligible

There is an available loan eligibility checker online so that you can check if you are an eligible borrower. You can also check how much you are allowed to borrow from money lenders with your information.

3. Anticipate your monthly dues

There is an EMI tool that can calculate the approximate amount of your loan repayments each month. You can simply modify the rate of interest as well as the tenureship to equal your monthly income.

4. Inquire at the bank

You can also go to a specific bank that offers personal loans. Check their personal loan plans and figure out what suits you the best.

5. Present the requirements needed

Know the documents and papers that they require and submit it to them. Most of the time, you will be needing your proof of income, valid ID, proof of address, bank statements or payslips. There might be more requirements than these but it all depends on the financial institution that you are dealing with.

 6. Determine their Legality

Know if the money lender that you are dealing with is legit or not. There have been reports that there are many money lenders that are not accredited by the government and does not follow standard rules and regulations when it comes to lending money. Most of the illegal money lenders offer high interest rate that is way higher than what is mandated by the law.

What to compare from different money lenders?

If you decided that you will need a personal loan, here are the things that you basically need and compare with the money lenders that offer personal loan. There is nothing wrong with shopping around before you get a loan.

• Amount: determine the amount that the lender is willing to offer you and check if it will be sufficient for your financial needs. Some financial institutions will offer you more than the other so you better check them out first.
• Terms and Conditions: be clear with every lenders terms and conditions to every loan package that they offer. As there are different types of packages and offers, you might want to go with the best package that is perfect for you.
• Fees: there are lenders that have upfront fees, application fees, monthly recurring fees and other fees. Make sure you know all of the fees that will be applied on your bill before signing any agreement. It will be better if you can find a lender with less applied fees. Not to mention, the fees will be on top of your loan amount repayments.
• Interest rates: learn if their interest rate is fixed or variable so that you can set your expectations for your repayment bills. You can also opt for the lowest interest personal loan package like the ones at GM Creditz that can be offered by one of the financial institutions that you are inquiring from.
• Repayment scheme: you can use the loan repayment calculator once you know the amount that they can offer as well as their terms. Check if you can afford the repayments that will be incurred on you once you have signed up. Determine if you will just be ok with it or if you will have trouble paying it. You can also check if they have monthly, weekly, fortnightly or annual repayments that and calculate what is best for you. Make sure that when you commit to the terms and conditions of the loan, you will be able to keep up with it and you will not have a hard time in paying so that you will not be penalized in the future.

Make sure that the money lender that you are dealing with is authorized by the government to give out loans because you would not want to be a victim of the illegal money lenders that will do harassment when repayment time has come. It is always a must to read the terms and conditions of every agreement for you to be sure that you are on the right track.