A personal loan is an amount of money you can borrow to use for a variety of purposes. Typical personal loan amounts range from $1,000 to $50,000, while loan terms range from 12 months to 60 months. As required, a personal loan can be repaid before the due date. This way you will save money on monthly interest payments.
There are several differences between personal loans and payday loans in Delaware. Firstly, it is possible to borrow a larger amount than in the case of a payday loan. Secondly, you can choose a longer return period. Thirdly, the interest rate of a personal loan is lower than that of a payday loan, which makes a personal loan a more profitable and convenient way to get the required amount of money.
One of the most important advantages of a personal loan is the ability to receive the required amount at once, and repay it gradually (taking into account the selected loan repayment period). After applying for a loan, a clear and visual payment schedule is offered so that the borrower can keep track of how much will need to be repaid each month.
Who can get a personal loan?
In order to get a personal loan, you must meet several criteria:
- be between the ages of 18 and 75;
- be a citizen or a legal resident of the USA;
- have an open active account in your name;
- have an active mobile phone number;
- have an official monthly income in an amount that allows you to pay the loan on time.
What can a personal loan be used for?
People most often use a personal loan in cases when a large amount of money is needed that can be repaid over a long period of time.
- for home repairs;
- for car repayment;
- for buying a car;
- for paying medical bills;
- for education;
- for buying household appliances.
When you need a new refrigerator or stove but you cannot wait until you get your next paycheck, a personal loan becomes a useful alternative.
Advantages of personal loans
- Loans for any purpose. This is the main advantage of this type of loan. As mentioned above, when registering it, you do not name the purpose of receiving money;
- No collateral required. Recently, most banking organizations have simplified the procedure for applying for this type of loan, without guarantors and collateral. This, in turn, accelerated the application process;
- Fast approval and funding. Funds are provided quite quickly, within several days. Bank employees make a decision based on an express analysis of the borrower. The registration of so-called express loans takes only a few minutes. To apply for a personal loan, you need a minimum list of documents.
Disadvantages of personal loans
- High interest rate. Due to the speed of processing, banks are at greater risk than in normal cases, so they raise the interest rate. Sometimes it can be 100 percent or more;
- Limited amount. In most cases, the loan amount does not exceed $10,000;
- Various commissions. When applying for a loan, you need to carefully study the loan agreement since banks often make various commissions, which leads to an even greater rise in the cost of the loan. This may also include service fees. And the money will not be returned to the borrower even if the loan is repaid early.
Thus, on the one hand, the advantages are personal loans are significant, but, on the other hand, this type of lending has disadvantages. When applying for this type of loan, you must carefully study the loan agreement, weigh all the pros and cons, and make the right decision. With a rational approach, this type of loan will help solve your financial problems.