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Different Types of Personal Loans

Do you have a financial problem? looking for a solution for your purchases, so personal loans are the best solution for you, and don’t worry personal loans are very secured a lot of people oblige to that solution. In this article, I will provide you with more information about types of personal loans. 

But before I tell you that, let’s talk about the Definition of personal loans which is a loan taken by people from banks to help them buy what they need with a percentage of interests.

Types of Personal Loans

-Unsecured loans

In this kind of loans, the bank won’t need for ane security so it is good if you need some extra cash but from its cons that it comes with a higher interest rate and if it is the first time for you to take a loan you will need a third party to garniture to the bank that you will [ay back the loan.

-Secured loan

If you have the intention to buy something big such as a house, car, and restaurant, for example, this needs a secured loan, but the thing that you are buying will be used as security by the bank. If you didn’t return back the loan the thing you bought will go to the bank they also can sell it and they come with low interest, so if you ready you can take that kind of loans.

-Fixed rate loan 

This a good type of personal loans because you won’t worry about what you pay in the future because the interset is fixed it won’t get higher by time. The tenure is from five to ten years with a fixed rate of interest from 9.5 to 11.75 %.

-Line of credit

In the kind of loans, you will pay interests not on the amount that you borrow but only on the amount that you spend. There is a limit to the amount you can access, also there is a lower and higher limit.

-Variable

This kind of loans is the opposite of the fixed loans which the interest can be changed and fluctuates. The prices can change according to the rules of the lender. The rates can come down or can also increase. It will be a bad thing if the interests decrease a lot you might not be able to afford it.

-Overdraft

The best solution to get money when there is an emergency case this loan will make sure that there is enough money in your account when you require. Bad things happen when you don’t expect them so it will be useful to have money in such cases.

-Holiday loan 

We all want to spend holidays but sometimes we can not spend our all savings on them so banks provide you with this kind of loans with tenure from two to three years but it comes with higher interest than the other types.

-Weeding loan

We all dream of a glamorous wedding but not all of us can afford it so wedding loans are the best in this conditions to make your wedding a perfect one and make the decoration and buy you one what she wants.