Banks are making it easier and easier to borrow money from them, however, a large number of their services are still locked away behind walls of restrictions. Whether you need a near-perfect credit rating in order to get a loan or have to have a large monthly income, the fact that not individuals can get any loan that they want is undeniable.
This having been said, what is the easiest loan to get? Incidentally, the easiest to get loan also offers the most flexibility in terms of what you can do with the money. Designated as a “Personal Loan” by lenders, this type of loan can be used for any type of personal need that you may have. The money can be used to pay for a home renovation project, for a car, to buy a laptop, a phone, and even to go on a trip abroad. Once your loan request is approved, the bank or lender is no longer concerned with what you intend to do with the money.
How Easy Is It to Get?
Getting personal loans can be more or less difficult, depending on whether you get them from a traditional lender or from an online one.
Regular lenders will not require that you have a great credit score, even if you want to take out an unsecured loan. In most cases, you will simply have to have a good relationship with the bank and have a history of always paying your debts on time. The amount of money that you will be able to borrow will depend on your income or on the collateral that you are willing to offer as part of the deal.
Most banks will give you a personal loan in a couple of days and only require that you submit proof of employment, proof of residence, and proof of income. Processing the request can take as little as 24 hours.
On the other hand, if you decide to take out a loan using an online lending service, you will be able to submit the same information online, through a website, and may receive the money in under 24 hours. It is also important to keep in mind that most platforms will not perform a credit rating check or report the loan to any credit register. The downside with these websites is that they offer higher interest rates than banks and the loans will be more expensive.
Can You Take out Secured Personal Loans?
Personal loans are generally extremely flexible when it comes to how you use the money, however, they are limited in value and term by your credit rating and income. If you want to borrow more money than what the lender is willing to give you, consider taking out a secured loan. This loan will still have the same flexibility as before, but you will have to offer collateral. This is usually in the form of your house, your car, or another piece of property that the lender considers of equal value to the loan.
Read the Terms and Conditions and Pay Attention to the Interest Rate
Where most people tend to make poor lending decisions is the interest rate. Individuals typically ask what the interest rate is, but do not ask if it is variable or fixed. Having a fixed interest rate attached to your loan means that all the monthly payments will be the same. On the other hand, if you get a variable interest rate loan, the cost of the debt will change with the interest rate, which may rise or fall from one day to another.