Likewise, it is popular among people looking at loan products to finance personal expenses and even to consolidate their other debts.
It can be used to finance different personal needs such as purchasing a car or cash to cover medical or educational expenses, among others.
The two general classifications of personal loans that one can apply for are car loans and lifestyle loans.
ALSO READ: Home Loans 101: Things to Know Before Lodging Your Applications
Personal loans can also be classified into two major categories depending on whether or not collateral will be required to secure the loan--secured and unsecured. Secured personal loans require the need of collateral to secure the loan, while the unsecured ones don't.
In terms of the acceptable collateral, the most common ones include real estate property (house and lot or land) or vehicles (cars/tractors/equipment).
Why should one get personal loans?
The application process is easy and some lenders can render same-day approval. Unlike home loans, documentary requirements are relatively less stringent and approval is somewhat quicker as well.
Personal loans are a good way to get cash for various personal expenses-including consolidating his multiple credit card debts and his personal loan--and just pay one loan instead.
You can also use personal loans to finance your other personal expenses such as health, education, and even travel expenses, among others.
When should you apply for personal loans?
This loan product is ideal for you if you are looking for ways to finance personal expenses and even to consolidate multiple debts into one--making it much easier for you to manage your debts.
You should, however, only get a personal loan only when you truly need one.
Who should get personal loans?
It is ideal for individuals with personal expenses that need immediate funding. It is also advisable for anyone who has a stable and continuous source of income or anyone looking at consolidating their debts into one loan.
How can one get personal loans?
You can directly go to lenders, but this gives him few options in terms of interest rates. Lenders differ on their requirements and interest rates, so you need to check with a specific lender for a better answer.
However, you have an option to work with a personal loan specialist-like Intellichoice!
This enables you to compare interest rates from different lenders-giving him more options.
If that’s you, then you might want to jumpstart your personal loan application, talk to us today!
Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane, where he specialises in owner builder loans. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. To jumpstart your home loan application, visit their home loan online application page today. Like and follow them on their Twitter and Facebook accounts.