Let’s talk about personal loan rates. Shall we? Before we look deep into personal loan rates, I want you to understand what personal loans mean. Personal loans are one of the easiest loans to get nowadays as it only has a few requirements. A personal loan is a money borrowed from a credit union, bank, or online lender. You would eventually have to pay back within a given period of time because it is a loan and is borrowed. This loan can either be secured or unsecured depending on the type of lender you are dealing with.
Personal Loan Rates – Personal Loan Interest Rates
A personal loan rate can also be likened to be a personal loan interest rate. These rates generally range from approximately a minimum of five percent to a rough estimate of thirty-six percent. The rate at which the lender is going to charge you depends on a number of factors. These rates would include your credit score, annual income, and debt ratios. There are certain banks that have low-interest rates but I do not know them because I haven’t used them before. You could search Google for the lowest interest rate banks to get a loan.
Types of Personal Loans
There are different types of personal loans but the most common types of personal loans are unsecured loans, fixed loans, variable loans, and debt consolidation loans. Most personal loans given nowadays are unsecured with fixed payments. You should also know that there are other types of personal loans which include secured and variable rate loans.
An unsecured loan is the most common type of personal loan. This loan is not usually backed up with any collateral. This kind of loan is riskier for lenders as there are no employed means to get their loan by force. The lenders in the sector of loans usually tend to charge higher than annual percentage rates.
Secured Personal Loans
Unlike the unsecured personal loans, the secured personal loans are backed up by collateral. The collateral can be seized by the lender if the borrower is unable to pay or defaults depending on the agreement. Some other examples of other secured loans include mortgage and car loans.
Many people don’t tend to talk about this kind of loan often but it is also common. In this kind of loan, you have to pay a fixed amount either monthly or weekly throughout the life of the loan. The amount you are going to pay is always agreed before the loan is given. This money you would be paying back is called the fixed rate as the amount doesn’t change.