You just bought your home and found that you have exhausted all your savings. You have a great job which...
As you browse through the internet, you find this cool gadget on eBay and realize that you have a similar...
You just bought your home and found that you have exhausted all your savings. You have a great job which you don’t plan on leaving soon and the pay is actually quite good. You see the need to establish an emergency fund but because of all expenses you incurred during purchase of your new home, even your emergency fund has been depleted.
Without any outstanding debt, you decide to get a personal loan to establish your emergency fund soon as possible. This emergency fund can help you for any unexpected expenses that may occur. Now that you have decided for a personal loan, the next question is how to find the right lender. Here are a few things you can check when looking for personal loan lenders.
- Find a licensed lender who have permit to operate as a financial institution
Always make sure that the lender you will partner with is someone who has been granted a license and a permit to operate as a lender. This will ensure your security as a borrower and avoid any negative experience from applying for a loan. Licensed lenders follow certain set of guidelines and established government regulations to ensure the security of the borrower. It will also be easier for the borrower to after the lender in case of bad service that has been provided.
- Work with a lender who reaches out to its clients rather than clients chasing them
Lenders who reach out are the ones who value their clients. When lenders know how to take care of their clients, you will most probably have a good customer service during the period of your personal loan. Getting a personal loan with a lender actually forms a partnership and any support you may need should be addressed by the lender.
- Look for a lender who is willing to answer your questions
Interview your personal lender. Make sure you ask questions to learn about them and the service they provide. By talking to your lender, you learn how they work with their clients and how much they value the relationship they are building. A lender who is willing to explain all the answers is willing to help rather than plainly do business.
Have you ever been caught up with financial requirements where you currently don’t have readily available cash on hand? It happens with the best of us. People experience the need for extra cash for various reasons. A few examples would be home repair, health emergency or even just for a family vacation. We may have the capacity to earn the cash we need but it’s possible that the timing of the need and the availability of the cash is not in the same time.
During these cases, a personal loan is one of the best solutions that you can avail of. Personal loans are cash loans provided by a licensed lender to assist you with your financial needs. This can be the answer to problems where financial assistance is required while the cash is not readily available.
There are two types of personal loans that can be availed of. The first is a Fixed Rate Personal Loan. This is a type of personal loan where the rate of interest is fixed and applied throughout the loan period. Regardless of the rates that are being offered by the market, the borrower will pay a pre-determined rate that has been established by the lender. This is most advantageous for loans which are long in term. The borrower is then protected from any fluctuations in the interest rates year on year.
The second type of personal loan is a, Variable Rate Personal Loan. As the name suggest, this type of personal loan applies a variable rate through out the life of the loan. Payments made are based on the prevailing market rate for personal loans. This means that the amortization payments can vary year after year. This type of loan is best availed of for personal loans with short term duration. It allows the borrower to secure a payment scheme not far from what has been established based on the prevailing market rate.
Personal loans make a good ally with proper management. It can help you with emergency spending that occurs in every person’s lifetime. Understanding how it works and how it can benefit you will definitely take you a long way.