Generally, a personal loan is a consumer loan granted by a bank, credit union or finance company for non-commercial use. This kind of loan can be used for purposes such as education, family vacation, wedding, house renovations or any other kind of personal needs.
At Finance Motors, we understand there are times when you might fall short of funds and a helping hand could make a world of difference. So no matter what you need the loan for, we will provide you with a worry-free and fast approved application while finding the most suitable deal for your personal loan.
Types of personal loans
There is not a “one size fits all” loan, as people are different and so are their needs and preferences. Therefore, we strongly recommend you to be properly informed before choosing a specific loan. For an easier understanding of the differences between the various loan types, we have classified them according to their requirements:
- Secured loans – the asset is used as security for the loan. They usually feature lower interest rates as they are considered less risky than the unsecured loans
Best used for: new car purchase, large purchases - Unsecured loans – no assets are held as security against the loan. In this case, there are usually higher interest rates as they are seen more risky by the lender as opposed to the secured loans
Best used for: extra cash for holiday or house renovation, debt consolidation - Variable loans – the interest rate can fluctuate, meaning that they can go up and down as the lender sees fit. They look a lot like a lottery ticket, if you are lucky enough for the interest rate to decrease, then you end up paying less than anticipating.
- Fixed loans – fixed interest rate throughout the life of the loan, which makes it easier for budgeting purposes. However, if the overall interest rates drop, your loan will keep its “high standards”, meaning the same high repayments for you.
