Personal loans are flexible financial products which can solve a wide range of problems, including debt consolidation and financing large purchases. A secured personal loan will need an individual to put a car, savings account, or property as security for the loan. At Union State Bank, we provide a range of personal loan options tailored to meet your unique circumstances. In the guide, we’ll discuss the most common types of personal loans, their advantages, and how to choose the right one for your financial goals.
- Secured Personal Loans
Secured personal loans require collateral, such as a car, savings account, or property, to back the loan. They are characterised by low interest charges and comparatively high maximum credit amounts because the danger is minimised for the lender, due to the security offered.
Benefits:
- They attract lower interest compared to other unsecured business loans.
- Better approval rates for those applicants who have a short credit history to their name.
- In case you want to fully utilize your assets to enjoy a good interest rate, then secured personal loans should suit your needs.
To find out more about secured loans visit the Union State Bank main page.
- Unsecured Personal Loans
Unlike secured loans that require the borrower to put an asset as security, unsecured loans can be obtained by a broad pool of consumers. These loans are approved depending on your credit score and income.
Benefits:
- No collateral required.
- Easy to apply and get approved.
- Unsecured loans are available to borrowers with good credit ratings for any need like vacation expenses or other expenses.
- Debt Consolidation Loans
Debt consolidation loans assist you to take a number of high interest debts and consolidate them into a single loan with a lower interest rate. It makes repayment easy and in some instances cheaper than other loan facilities.
Benefits:
- Substantial savings along with just one easy monthly payment.
- Reduced interest costs.
- If people have problems with their many debts, taking out a single loan is a rational idea.
- Fixed-Rate Loans
A fixed rate loan ties the interest rate at the time of borrowing and consequently the monthly installments are not subject to fluctuation. This makes budgeting less of a problem and does away with the problem of unpredictable rates.
Benefits:
- Consistent payments.
- Protection from rising interest rates.
Fixed-rate loans are ideal for borrowers who prefer financial stability, particularly for long-term goals like financing a car or home improvements.
- Variable-Rate Loans
Variable-rate loans are those loans whose interest rates are adjusted with the market prices. Even though these loans can be had for relatively low interest rates initially, the borrower should be ready for an interest rate hike.
Benefits:
- Lower initial interest rates.
- It is appropriate for short term finance requirements.
This type of loan is suitable for those who want to pay back the loan soon or those who do not mind fluctuating payment schedules.
- Lines of Credit
A personal line of credit is similar to a credit card because it offers you a line of credit with which you can borrow as much as you want at any given time up to the limit that has been given to you. This flexibility makes it suitable for use when dealing with infrequent expenditure.
Benefits:
- It is interest only on the amount that is being utilized.
- Reusable without reapplying.
A line of credit is especially perfect for paying for urgent needs or for maintaining recurrent costs such as repair and maintenance of a house.
- Specialty Loans
Union State Bank also provides special accounts for special occasions like marriages, holidays or tuition fees. These loans are designed to allow you to meet life milestones without worrying about the financial aspect of it.
Benefits:
- Affordable prices for specific objectives.
- Personalized loan terms.
Choosing the Right Loan
Depending on which loan type best suits your needs, some of the key issues that should be considered include; Credit status, Repayment capability and loan purpose. For instance, secured loans can be taken by those who have security to offer while unsecured loans are suitable for those with good credit but no security to offer.
If you want further details about personal loan management, you can visit the Consumer Financial Protection Bureau for loans.
Bottom Line
It allows you to avoid common pitfalls when choosing the necessary type of personal loan and meet your needs. Regardless of whether you want to pay off other debts, have some emergencies or plan a significant event in your life – we will be there for you as Union State Bank.
Come to Union State Bank today and learn about your available options and get professional advice from Union State Bank’s financial specialists. As you will see on this page, getting the right loan means your financial dreams are within your reach.