The interest rate on the loan that you take out will determine how much you will pay for loaning the money. It is also a good idea to look at how long it will take you to pay off the loan because the longer you will be paying for, the more money you will have to pay. Whatever you are going to use your personal loan for, it is essential to compare several different personal loans from several different financial service providers to find the right personal loan for you and your budget.
Taking on debt is a very serious step to take in life and must be done with the utmost care and consideration for the consequences of making the wrong move. Remember that the debt you acquire today will affect your future very deeply.
What is a personal loan?
A personal loan is an amount of money leant by a financial service provider to an individual who has applied for it. There is always an interest rate on personal loans. Some financial service providers may supply personal loans that have a fixed interest rate while other will offer personal loans that have a compounding interest rate resulting in a much higher monthly payment. There are a wide range of different options for personal loans and you should definitely compare several loans before choosing any specific one.
What can you use a personal loan for?
People use personal loans for a wide range of different uses. Sometimes, personal loans are used to pay off several other debts. This is so that the individual will only have one loan and one interest rate to worry about rather than several every month. Other individuals use personal loans to help them get by during a particularly difficult financial period. Many people also take out personal loans to help pay for unexpected expenses like vets bills, hospital bills or other bills that they were not prepared for.
Many other individuals use personal loans to pay for items that they need like sporting equipment or to pay for their travel somewhere. Personal loans can also be used to finance small businesses or to pay for vehicles or education. There is really no limit to what you can use a personal loan for.
Who will finance your personal loan?
Almost any financial service provider offers at least one type of personal loan. What differs between them is usually the terms and conditions of that loan including the period of time you have to pay it back and the interest rate that you will have to pay. Reputable financial service providers like Nedbank, Wesbank, First National Bank, Standard Bank, ABSA and several others, will usually have a large range of personal loans on offer. You can compare interest rates and loan terms between these and other financial service providers and make your choice.
Companies like Woolworths also offer personal loans. However, their range of offers will be more limited. There are also several small companies that will offer you a personal loan but it is always better to go with a reputable, well-known financial service provider that has a large base of happy and satisfied customers over a small, little-known company with little to no reviews.
What are the requirements for qualifying for a personal loan?
Usually, any financial service provider will want to see two basic things before approving your loan. Firstly, they will want to know that you have a steady, reliable income that will cover your living costs as well as your monthly loan repayments and interest. They will also want to see that you have a good credit record so that you will not be a risk to them.
Comparing financial service providers to find the lowest interest rates on personal loans
There are several ways in which you can compare personal loans to find the lowest possible interest rates. Firstly, you could contact several financial service providers and ask them what they offer, or you could use an online comparison tool. Compareshop is just one of these websites that will help you find the lowest possible interest rate.