The Pros and Cons of Personal Loans
Cash strapped, in need of money urgently? Want to fulfill an urgent need or sort out a pressing financial issue without stress? Then personal loans are the best way to go. You can easily get a loan on the go even within 3 – 24hrs without any stress!
However consider the pros and cons of taking a personal loan before taking any decision.
Here are some advantages of taking a personal loan-
1. No Collateral Required: Unlike other forms of loans, Personal loans do not require any collateral, guarantors or securities. You don’t have to put down anything of value to obtain the loan.
2. Minimal Documentation: With Personal Loans, documentation required is minimal. With your bank statement, identity cards, and bio data you are good to go!!
3. Easily Accessible: Other forms of loans take ages to access with a lot of bottle neck process involved. However, with personal loans you are good to go! No stress and cash available within a short period.
4. Versatile: Do you know you can get a loan for literally anything under the sun?? Want a new car, house, travel, dream vacation, etc. why wait when you can get money now and pay later!
5. Pay in Installments! : You don’t have to cough out the whole cash at once when paying back. Just pay in bits monthly throughout your repayment plan which usually within 1 – 2 years. Personal loans are structured in a way that repayments can be done in monthly installments till the loan is fully paid.
6. Excellent Credit Rating is not Required!: No need to sweat it out on this even with a not so good credit report you can still access the loan facility you need without stress!.
Disadvantages of Personal Loans
Personal loans are a very attractive option especially when in need of quick cash on the go. However, as good as it may be it is very important to familiarize and understand the processes involved with personal loans in order to prevent been entangled with some of the cons associated with them.
1. Fixed monthly payments: While fixed monthly repayment might not be an issue for most people, to some it might be an issue especially for those with low salary or too much responsibilities. However this has been taken care of by lending companies as you can only access an amount you can pay off easily.
2. No part payments: Although some loan companies offer the option of part liquidating your loans and your loan repayment is restructured other loan companies do not. As a result you will have to see out the tenure of your loan repayment. However, whichever it is there will be no additional charge on your loan repayment.
3. Need for good credit rating: Since personal loans are a bit risky, most loan companies insist on you having a good credit report before you can access loans. If you have a poor credit rating your loan application might be rejected except you have a genuine reason for you been late on repayments of previous loan(s).
4. Structured and within a short term: All personal loans are structured and payable within a very short period of time normally within 18 months. Although, paying quickly will increase your chances of accessing more funds at lower interest rate for extended periods.
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In need of quick cash on the go? Call Samuel Odebola - 08106406979