Personal Loan

A personal loan is where you apply to borrow a specified amount of money from a bank for a personal expense.

The loan is then paid back to the lender with interest in equal payments over an agreed period.

There are two different types of personal loans, that being a secured personal loan and an unsecured personal loan.

A secured personal loan is when you use an asset such as a car to secure the loan. Sometimes secure loans offer a lower interest rate compared to that of an unsecured personal loan, as the lender will be able to sell your asset if you are unable to pay the debt.   

An unsecured personal loan is where the lender doesn’t require a security to be held against the debt. You will need to show that you can repay the loan, validate your income and credit report. The interest rates on an unsecured personal loan are sometimes higher than that of a secured loan.

If you are looking a getting a personal loan, before you do anything contact Jeff your local mortgage broker at Homeloans Plus, he will be able to assist with your personal loan application and guide you through the process.