Personal Loans

These are the loans that you can borrow to meet any of your personal financial requirements which can relate to wedding, travel, education. The personal loans are an easy option to raise small to large amount for a minimum term of 6 months to a maximum of 5-10 years at reasonable rate of interests.

The banks extend personal loans under two broad categories:

1. Secured loans
2. Unsecured loans.
3. Hybrid loans

The secured loans are the type which requires a property to be placed as collateral with the bank. The unsecured loans can be taken without pledging any property. The two types of loans also differ in the interest rates. Secured loans have a lower rate of interest than the unsecured loans. When both are compared then the unsecured loans are a little costly than the secured loans.

Conditions for personal loans:

1. The individual should be the citizen of the country.
2. Should be employed or earning by self employment.
3. Should have a history of employment in the case of bad credit score or CCJs.
4. Some banks also lay down the conditions of residential status in any place.
5. The banks also lay down certain years that the person should be in employment. This term differ for self employed and salaried persons.
6. The person applying for the loan should be of 21 years of age and should not be more than 58 years of age. This age limit may differ in different regions. The upper age limit is extended by 5-6 years for self employed persons.
7. The person should be earning a particular amount on yearly basis. This again may differ among different regions or among the banks as well.

The documents you require are:

1. An address proof
2. Identity proof
3. A proof of age
4. And the employment proof

There are companies that provide the online personal loaning. This mode of loan application is much more convenient as the loans processing is fast and you can apply for the loans from your own place without visiting the bank. Here you can also get the online assistance from the experts regarding the loan features, requirements and the processing of the loan.

Personal loans are the easy mode of financing the requirements. The persons with bad credit history can also apply for the loans. The interest rates are generally higher for them. They can manage on this front by applying for secured personal loan. This not only provide some flexibility on the amount of loan that can be extended but also reduce the rated due to placing of the security for the amount raised.