Advantages and disadvantages of a personal loan

Advantages and disadvantages of a personal loan Before applying for a personal loan, it is important that you do your research. Borrowing money can give you access to the funds you need to pay off a debt or make a large purchase. But it does mean that you have to be sure that you can make the monthly payments to pay off the loan.

Advantage: Payments are usually fixed, so you know how much you can afford each month. The interest rate is usually fixed, with no commissions to pay. Choose the return terms to make it more affordable

Advantages and disadvantages of a personal loan Disadvantages: You need to make sure you borrow only what you need and can make payments within your monthly budget. The interest rate on smaller short-term loans may be higher than other types of loans Depending on the type of loan you apply for, you may have to pay additional loan fees. If you've done your homework and decided to apply for a loan, the next step is choosing between a secured and an unsecured loan.

What are the different types of loans?

Not all situations require the same type of loan. There are two types of loan available, each with unique features to suit different circumstances.

secured loans

A secured loan is when you borrow money secured against an asset, usually your home. If you don't keep up with your payments, you could lose the asset you used to secure the loan..

unsecured loans

With an unsecured loan, sometimes known as a personal loan, the money you can borrow is determined by your credit score. You will not be secured to any of your assets in the way that a loan is

What interest rates are available?...

The interest rate that you will be offered on a loan can vary, depending on certain factors. These include your financial history and current circumstances, as well as the type of product you are applying for. Our interest rates start from 4.99%. A better credit score can lower the rate you're offered and get you a better deal overall. Each loan repayment plan is calculated on a case-by-case basis. Refund amounts are determined by the Annual Percentage Rate (APR). APR is what lenders charge for a loan, including the interest rate, plus other fees. To learn more about APR and what is involved in calculating the rate, see our APR guide.