Personal loans are also known as unsecured loans because they are lent without any collateral or security. The amount borrowed here is more than credit card limit and the repayments are fixed. The payment of the loan, though small an unsecured are fixed every month, just like with any long-term loan. This makes it easier for you to plan your finances accordingly.
Similarly, when it comes to the rate of interest, it is usually a fixed rate but some loans have varied interest rates. It is always better to check and get these clarified before you avail the loan.
How Does It Work?
So how does this personal small work? One can borrow any amount of money for any period of time as a personal loan. Even if you want just 20 euros for a period of one week, you can borrow it.
Generally one has a period of 14 days from the date of taking the loan, to start the payments. If you cancel the loan, you need to pay it back within a period of 30 days.
The biggest advantage here is, though the interest is high to compensate for the high risk undertaken by the lender, you will have to pay interest only for the period you have borrowed. If you foreclose the loan, you will have to pay interest only for the period you had the money.
Where To Get It?
So where can one get this type of loan? Most of the banks and many private lenders offer this type of loan. Search online or ask around for leads for personal small loans. One is sure to find competitive offers.
However, one should always watch out for the interest rates. Though advertisements can claim a very low-interest rate, these are usually APR (Annual Percentage Rate). This rate depends on your credit history and credit score. Hence, it is always better to get a quote for you specifically before you apply for the loan rather than go with what you see in advertisements.…