SearchFaqs.com | Quality Content Found Here

Home - Personal Finance - Personal Loans And All You Need To Know About Them

Personal loans and all you need to know about them

Several people apply for personal loans to cater to larger expenses in life. One primary reason a lot of people opt for such loans is that these are mostly unsecured. So, that means there’s no need for collateral to avail a personal loan from the bank. Moreover, the processing time of a personal loan is pretty fast. Both banking and non-banking institutions offer these loans to many individuals. Moreover, given the advent of digital services offered by the banks these days, you can now get a personal loan in less than 48 hours.

What is a personal loan?

Personal loans and all you need to know about them

An unsecured loan, which is offered by the financial institutions after an examination of aspects, such as your repayment capacity, employment history, credit history, profession, and income, is called a personal loan. This multi-purpose loan is often regarded as a consumer loan and can be availed to cater to your immediate needs.

When should a personal loan be taken?

For individuals seeking a personal loan, it could prove to be one viable option under a multitude of circumstances. For instance, if you wish to buy a car, you take an auto loan; you want a home, so you take a mortgage loan; or you ought to pay for your college fee and take up a student loan. However, there’s no certain reason individuals take personal loans; it could be for anything. There’ll be lenders who’ll question you about your reason to take a personal loan. However, if you have taken the loan for a legal and responsible cause, you can use it for whatever reason you deem fit. It is on you to decide what it means for you.

Since collateral is not required for taking personal loans, they are unsecured. So, when you take a car loan, your car becomes your collateral; similarly, in a mortgage loan, the home acts as the collateral. But in case of personal loan, there’s nothing. So, that directly implies that the rate of interest will be huge. However, if you desire a low-cost personal loan, you can also get a secured personal loan.

Here are a few circumstances under which you could get your self personal loan.

When you have to consolidate your credit cards
When you have more than one credit card, which is charged at the maximum, you should consider consolidating all of your charges into a single monthly payment. Now, what is it that makes the scenario highly appealing? The rate of interest on your loan would be much less than the credit card’s APR (Annual Percentage Rates). So, on repayment of the loan, you’ll naturally feel relaxed; given you’ll again have a new credit limit.
You can use your loan to refinance student loan
If you need a certain financial relief, refinancing the student loans could certainly do the trick for you. The rate of interest on the student loan will be approximately 6.8 percent or even more than that based on the loan that you have. There’s a good chance that you can get a personal loan for a much lower rate of interest to pay back your loan faster. However, here are some issues associated with this whole scenario.

In most cases, student loans do come with a bunch of tax benefits. Moreover, federal loans are packed with a lot of benefits, such as forbearance, deferment, and repayment. Moreover, if the lawmaker would ever consider forgoing a loan anytime in the coming years, besides the loans already in place right now, this refinanced loan wouldn’t be eligible. Moreover, using your loan for paying a whole or a part of the student loan means that you’ll no longer be able to avail of interest payment deductions in your Income Tax Reports. Further, getting personal loans for payment of student loans means you lose out on benefits, such as deferment and forbearance. Moreover, if the balance is considerable, a personal loan wouldn’t be enough to cover it. Thus, before you choose to refinance the student loan, you should take note of all of these issues.

Personal loans can aid in financing a purchase
Are you planning a big purchase? Is it to satiate your need or wants? If you are planning on taking a loan, it is certainly a better decision than paying the seller via a high-cost bearing credit card. So, you can take a loan and pay your seller in cash. However, much ahead of this, you should directly request the seller about any applicable offer. Then, compare the credit card offer to what a personal loan offer would be like. Depending on the two terms, it would be easier for you to make a choice.
Personal loan to fund your wedding
Many people take personal loans to fund a huge event, like a wedding. Of course, it is better than putting all your expenses on a credit card, which you’ll have to pay off in a month. Taking this loan for some massive expenditure, like a wedding, could certainly save you from a massive interest rate, given that the interest on the loan is much lower than what you’d have to pay on the credit card.
Your loan helps you build a credit
There are three key ways in which your loan proves to be helpful for the credit score. Firstly, in the credit report, if there’s only a credit card debt, then taking a personal loan would give it a good account mix. Taking up distinct forms of loans can certainly be a favorable situation for your credit score. Even those with bad credit can get a personal loan. Secondly, a personal loan can help reduce the credit utilization ratio. Now, what is a credit utilization ratio? It is the comparison between the total debt that you have in comparison to the credit limit. Your credit score will be better if you use a lesser amount of the total credit. When you have a personal loan, the amount that is available for you to use is higher. And finally, when you repay your loan in time, the credit score automatically improves.

Thus, given the right circumstances in which they are taken, the personal loans do prove to be highly useful. For instance, a lot of people are unable to buy a car in cash, so they get an auto loan. So, this makes auto loans helpful. However, before you take any loan, consult a trusted financial institution, measure your options, and then make a choice.

Questions you should ask the lender before taking a personal loan

Here is a list of questions that you should ask the lender before you seek a personal loan.

Which type of loan should I opt for?
We know that you have decided to take up a personal loan, but you must know and understand that there are a bunch of other options available for you to avail of. There are travel, festive, wedding, and home renovation loans. The type of loan that you take would primarily depend on the end-use of this loan, and the kind of situation that you are in.
What will be the cost of the loan?
On a personal loan, the APR could be anything between 11% to 22%. Certain lenders might also charge an interest less than 11%, while there will also be lenders who charge you over 22%. It all depends on the lender that you pick and your credit history. Given the fact that the APR is variable, it will certainly have a major impact on your monthly pay-outs. Thus, it is important to ascertain the interest on the loan before applying for it.
What will be the processing fee?
Some lenders keep the processing fee somewhere between 0.5% and 2%. However, in certain cases, the processing fee could be 5%, which can affect your overall loan cost. Thus, it is important to be upfront and ask about this to your lender. Sometimes, the bank is ready to negotiate on the processing fee. So, if you are a loyal customer with a bank, you can certainly ask them to reduce or completely waive off the processing fee for you.
Are there any additional charges?
In addition to the processing fee and the interest cost, there might be several other charges that you may have to bear on your loan. These charges could be for
- Legal procedures
- Late fees
- Documentation
- Foreclosure
- Prepayment penalty

It is best to get clarity on these charges before availing a loan.

What is the estimated amount that you’ll get?
Of course, when you reach a bank or a lending institution, you’ll ask for a loan of a particular amount. However, when the additional cost on the loan is added, the amount of the loan naturally increases. Thus, you should ask the bank upfront about the amount of the loan that you’ll get so that you can be mentally prepared to bear this financial cost.
How much time would the bank take for the approval of your loan application?
In most cases, personal loans get approved quite quickly. There have been times when people have got the approval of their loan application in less than a day. However, the processing of the loan might take some additional time after approval. So, if you are in an urgent need for a loan, it is best to communicate this to your lender.
How long does disbursement take?
It is an important question that must be asked by your lender. Though in most cases, the amount of the loan will reflect in your account any time between 3 and 5 working days, it is best to get better clarity on it from the bank.

Documents that you need for getting a personal loan

When you apply for a personal loan, you will be asked to submit a bunch of documents. These papers include

Loan application
All lenders have their loan application, which is mandatory for you to fill in. Only once this application is filled in, your process of the loan will be further initiated.
Identity proof
This is needed to ensure that you are not pretending to be someone you are not. Furthermore, to get a loan in the country, you should be a permanent resident or a citizen of the United States. Also, every individual applying for a personal loan must be aged 18 years or older. There is a mandatory need for at least two types of identifications to be submitted to the bank, such as
- Passport
- Birth certificate
- Certificate of citizenship
- Driving license
- Birth certificate
- State-issued ID card
Address proof
In addition to these documents, the lender will also need proof of your current living situation. They must determine that your lifestyle is stable. For this, you could submit either of the following documents:
- Rental or lease agreement
- Voter registration card
- Utility bills
- Document proof of insurance on the vehicle, rental, lease, or home
Income and employer verification
The unsecured personal loan taken by you is vastly different from all the other forms of loans like mortgages. In personal loans, there’s zero collateral backing as such. As a result, the risk for the lender is higher. This makes it a necessity for the agencies to ensure that you are creditworthy. So, for this, they’ll examine your documents that will give them proof that your income source is steady and you are capable to repay their loan. Here, is a list of documents that you can submit for your income verification:
- Your tax returns of the previous two years and/or 1099s and W2s of the last two years
- Your last two paystubs
- Last two month’s bank statements
- Contact information of your employer

Disclaimer:

The content provided on our blog site traverses numerous categories, offering readers valuable and practical information. Readers can use the editorial team’s research and data to gain more insights into their topics of interest. However, they are requested not to treat the articles as conclusive. The website team cannot be held responsible for differences in data or inaccuracies found across other platforms. Please also note that the site might also miss out on various schemes and offers available that the readers may find more beneficial than the ones we cover.

Choosing An Instant Approval Credit Card

Don’t bite off more than you can chew

Latest Articles

The Causes And Symptoms Of Carcinoid Neuroendocrine Tumors

The causes and symptoms of carcinoid neuroendocrine tumors The neuroendocrine system can be described as a network of glands producing hormones that are carried into the bloodstream. There are different roles that these hormones play in the human body. The carcinoid neuroendocrine tumor is a very rare tumor that shows up in the cells of the neuroendocrine system. Around 80% of these tumors grow in the small bowel and the appendix. However, they can even grow in the lungs, pancreas, ovaries, stomach, testicles, and kidneys. These tumors develop at varied rates, and they are usually slow at developing. They might develop over several months and even years. Nevertheless, there are some tumors that tend to be highly aggressive. They can spread very quickly to other parts of the human body and can even result in serious issues. What are the causes of carcinoid neuroendocrine tumors? Experts are still not aware of the main causes of neuroendocrine tumors. However, there are certain conditions that might make you a victim of these tumors. These are called risk factors, and they are situations and diseases that you cannot control. Some of the most common causes of neuroendocrine tumors are as listed: Some diseases that are caused due to family history or genes passed to an individual through their family can increase their chances of having a carcinoid neuroendocrine tumor. Individuals with multiple endocrine neoplasia disease can be the victims of carcinoid tumors. This is a disease where tumors form in the cells, making hormones or chemicals that have a major effect on the actions of the body, such as sex drive, mood, and hair growth. Your age can have an effect on your chances of suffering from carcinoid tumors. There are certain NETs that have an effect on people of specific ages. The gender of an individual also has an effect on the risk for certain NETs. However, women have an increased chance of suffering from these tumors. The race of a person also has an effect on their chances of suffering from carcinoid tumors. The immune system in the body is its defense against all kinds of germs. Diseases or conditions that affect the immune system, such as organ transplant and HIV/AIDS, can increase the chances of neuroendocrine tumors in individuals. Excessive sun exposure can also result in neuroendocrine tumors. This is because the sun gives off ultraviolet rays that damage the skin DNA. This can result in the growth of cells in an uncontrolled manner, resulting in cancer. Studies have proved that smoking can also increase the chances of neuroendocrine tumors in people. What are the symptoms of carcinoid neuroendocrine tumors? Neuroendocrine tumors are generally diagnosed in people between the ages of 50 and 60. People with these tumors might experience certain symptoms, or they might not have any signs or changes in their body. The symptoms of neuroendocrine tumors include the following: Anxiety attacks High blood pressure Headaches A fever Rapid pulse Clammy skin Sweating Vomiting Nausea Heart palpitations Weight loss Flushing Severe diarrhea Wheezing Increased heart rate Appetite loss Sudden changes in blood pressure Always keep in mind that neuroendocrine tumors are rare and therefore the above-mentioned symptoms might be the result of other medical conditions. Nevertheless, it is important to consult a doctor if these symptoms persist for more than two weeks. What is the prognosis for carcinoid neuroendocrine tumors? If you go through carcinoid neuroendocrine tumor prognosis, you will be able to find that these tumors are either malignant or benign. The benign tumors tend to be small and can easily be removed completely, not to come back again. There are no symptoms produced if you are suffering from benign carcinoid tumors. The cells from these tumors do not spread to other parts of the body. The malignant or cancerous carcinoid tumors are large and can damage organs and tissues close to them. The cells of these tumors can easily break and enter the lymphatic system and the bloodstream to form new tumors. How can carcinoid neuroendocrine tumors be prevented? There is no way of preventing these tumors at present. However, quitting or not starting to smoke might reduce the risk of these tumors. It is important to maintain a healthy and balanced diet and a good lifestyle in order to prevent such tumors.

An Overview Of Cla Safflower Oil

An overview of CLA safflower oil CLA stands for conjugated linoleic acid. It is high in good fats, i.e., monounsaturated fats and polyunsaturated fats. According to the National Institutes of Health, typically, CLA is found in foods like beef and dairy. However, it can also be found in small quantities in vegetable oils. Safflower oil is a oil produced from the seeds of a safflower plant; thus, it is a vegetable oil. Safflower plant is about 30 to 150 cm in height and each branch of the plant has about one to five flower heads with 15-20 seeds per head from which the oil is extracted. The plant is found in Kazakhstan as well as India, the USA, Mexico, and Argentina. Below is some information about CLA safflower oil. What are the advantages of using CLA safflower oil? The CLA safflower oil is a rich source of unsaturated fatty acids, namely, polyunsaturated fats and monounsaturated fats. These fats, commonly known as good fats, are required by the body to function well. The CLA safflower oil helps in improving memory and aids hormone regulation. This oil allows the body to absorb fat-soluble vitamins like vitamin K, E, D, and A. CLA safflower oil reduces inflammation in the body and also improves general health. It is a good way to regulate blood sugar levels in the body. Regular intake of CLA safflower oil improves blood cholesterol levels, thereby, reducing the chances of any kind of heart diseases. It contains vitamin E, which is great for skin issues like dry skin or even inflamed skin. However, you must perform a patch test before applying the oil all over the skin. How do you use CLA safflower oil in diet? The moderate use of safflower oil in your food will improve your metabolic rate, thereby, reducing your weight. The proportion of safflower oil intake would be dependent on weight-loss calorie requirement. For instance, a woman who needs to have 1200 calories daily would need 4 teaspoons of the CLA safflower oil. Men who are on a diet and need to consume 1600 calories would need 5 teaspoons of it. What are the side effects of CLA safflower oil? Most often people do not face any side effects from this oil if it is consumed or applied in recommended proportions. CLA safflower oil thins the blood so it could slow down clotting and could increase the chances of bleeding for those who have bleeding disorders or are undergoing some sort of surgery. People allergic to ragweed or pollen should not consume this oil as it could lead to an allergic reaction. Pregnant women should avoid it. Which are the best safflower oils of the year? As per CLA safflower oil reviews, the following brands have made the list of favorites among consumers this year: Renewalize Organic Safflower Oil – This is a USDA-certified brand and it is high in oleic acid. Renewalize Organic Safflower Oil is extracted using the cold pressed method that allows it to have a high amount of oleic acid, which is great for hair growth. Hollywood Safflower Oil – This is a great oil for cooking. It is the best when it comes to light heat cooking. The Hollywood Safflower Oil is available in a pack of one, three, or twelve, and it works well for pasta and as a drizzle over appetizers. It is good for cake mixes as well. Eden Unrefined – This brand of CLA safflower oil is organic and kosher, and it only has safflower oil. It works well for acne-prone skin and for cooking too. Dr. Adorable One Gallon – If you want to use CLA safflower oil especially for body massages, then this brand works beautifully as it blends well. You can take a generous quantity and apply it all over the body. It has no noticeable smell. However, this oil should be only used for external purposes. Spectrum Naturals High Heat – This brand produces the perfect CLA safflower oil for cooking. It has a smooth flavor that is ideal for cooking. The Spectrum Naturals High Heat does not have any artificial coloring, genetically modified organisms (GMOs), and other common allergens. It is much lighter than other oils, such as olive oil.

Top 10 Health Benefits Of Safflower Oil

Top 10 health benefits of safflower oil Safflower oil is an oil that is extracted from the seeds of the safflower. CLA stands for conjugated linoleic acid. CLA is a type of polyunsaturated fatty acid. The CLA safflower oil has a number of health benefits; hence, it is being used as medicine by many people. CLA safflower oil can be used for treating a number of health issues and it is also used as a cooking oil. Continue reading if you wish to know more about the amazing health benefits of safflower oil, its side effects, and more. What are the health benefits of safflower oil? It is believed that safflower oil helps in boosting the immune system. This oil has properties that can protect the body from any kind of infections and it is considered to boost immune health. The CLA safflower oil is good for your heart’s health. When you are having heart-related health issues, your doctor will usually suggest you maintain a balanced diet, and it is important to keep it natural. Safflower oil is a natural oil that has omega-6 fatty acids, which are good for a healthy heart. The cholesterol levels of the body are also maintained using this oil. CLA safflower oil helps in losing weight. Shedding those extra pounds is not a simple task and you need to do a lot more along with exercise. Safflower oil is very good for healthy and shiny hair. If you are having dull, damaged, and dry hair, then this oil can be very helpful. Just massage a few drops of this oil into your scalp and it would increase the blood circulation in your scalp resulting in strong hair. When you have strong hair, why not have flawless skin? Yes, there are a number of products available in the market for flawless skin, but how many of them guarantee long-lasting results? Safflower oil can do that for you. You can check the CLA safflower oil reviews for skin and you will find the best reviews about this oil. It is good for joint pains as well. Massaging is one of the best ways to get rid of joint pains and massaging with safflower oil is a good option for better results. Diabetes is a health condition that needs to be treated with the right medicine. According to many studies, the omega-6 fatty acids are considered as the best option for controlling sugar levels in the body. It is also good for treating a migraine headache. Any health problems related to respiration can be treated using this oil. Menstrual pain and cramps in women can be treated with the help of this oil. Are there any side effects of safflower oil? There are no side effects of using safflower oil when used in moderation. This oil is strong and can cause irritation, so do not use it directly. You need to dilute with any carrier oil before you actually use it. What is the dosage of safflower oil that is good for your health? The dosage of CLA safflower oil usually depends on what kind of health issue you are treating. If you are using it to help reduce weight, then you can use it as cooking oil for at least six weeks. For this, you should consume at least one and a half teaspoons of this oil on a daily basis. How should safflower oil be stored for better results? Safflower has to be stored always in a dark place in an airtight container. Safflower oil can be kept in the refrigerator. In order to reduce the chances of oxidation, you should make sure that minimal air and light reaches the containers in which the oil is stored. You need to use the oil in just one or two months after you open the packing or oil tin.