TYPES OF PERSONAL LOANS

Online personal loans are a financial product created with the objective of helping people pay certain expenses that arise unexpectedly, without having to use their savings to meet the debt. These personal loans, similar to personal mini-loans, have existed for a few years and each day their use takes more boom worldwide.

There are currently several types of personal loans , each adapted to the need of the person who needs it. Therefore, it is important to know what personal loans are and what types of personal loans there are. If so, you will be able to know which one should be requested at any given time.

We can define personal loans

We can define personal loans

Are a form of financing that allow to cover specific economic needs (a trip, a medical appointment, a car repair, among others). Its main feature is the speed with which they are managed. Depending on the type of credit, the amounts will vary.

For microcredits the amounts are lower (between 50 and 900 dollars), while for normal loans the amount is higher (between 3,000 and 30,000 dollars).

When processed through the Internet, in order to apply for personal loans online, it is not necessary to present that endless amount of paper requested by traditional banks to process them. These loans can be requested from home without any problem.

But, as we said a few paragraphs ago, there are several types of personal loans and here we will point them out:

  • Fast microcredit: These are small credits that are granted in a short period of time. From the time the request is made until the money is received, a maximum of 24 hours can pass. These range from 50 to 900 dollars.
  • Instant personal loans: The credits instantly differ from the mini-credits in the amounts they lend. With personal loans, the amounts usually range between 3,000 and 30,000 dollars.

Interest rate personal loans

Interest rate personal loans

Personal loans have two types of interest and it is important to know them before applying for a personal loan. Read here about the personal loan interest rate .

  • Nominal interest rate (TIN): These are also called consumer credit. This interest is fixed since it does not vary throughout the life of the loan. Most personal loans have a TIN that ranges between 7% and 9%.
  • Annual equivalent rate (APR): This is a measure that indicates the annual cost of a loan, if your interest is taken into account as other costs. The average APR is 8.69%.

Type personal loans

Type personal loans

As we indicated in previous paragraphs, there are different types of personal loans and each of them adjusts the needs of each person. Ideally, before requesting one, analyze what expenses you will face to know what type of credit you need.

If you are looking for a loan that allows you to pay a small debt, it is best that you get a microcredit. On the other hand, if you need a larger loan, you can apply for a personal loan. Both are very simple to request.

Online bank loans

Online bank loans

Surely at this time you are looking for a way to get a personal loan and among those options is to search for online bank loans. There are currently many banks that offer credits on their websites.

You just have to look for and make sure you meet all the requirements that the bank requires to grant a loan. These requirements are usually much stricter than those requested by non-traditional financial institutions.

Online bank loans are also an alternative, but urgent microcredits are now being requested more frequently, due to their many advantages.

What are these advantages? Here they are: they are comfortable to apply for, they do not require many paperwork, they are quick to grant, they accept people with risky profiles and, in many cases, they can be ordered without endorsement or payroll.

Now it is up to you to choose the type of loan that you think is convenient for you. The important thing is that you ask for a realistic amount and that you can pay back in the term agreed by both parties.

Related posts