Although it can be used for consumptive activities but should not all the needs are met with funds from credit assistance. If that’s what you do, it can create a loss for yourself. Before proposing this type of loan, you may need to know some important points that will help you make your decision wisely. Just read more this article, even more, if still want to gain much more information about anything related to a personal loan. The following are things you should know about the personal loan.
Personal loan does not require a guarantee
This type of loan product does not require the debtor to provide any guarantee to the bank or lender. Thus, the personal loan is also called an unsecured loan. You see, for banks, these products include high-risk credit products in the absence of collateral or collateral for loans. This is different from other credit products such as home loan (mortgage) or working capital loans that must require the inclusion of collateral for debt funds can be liquid. The absence of these collateral liabilities makes personal loans an attractive option for those who need cash loans in quick time.
Loan interest is relatively high
The absence of liability for the debtor includes collateral, carrying price consequences or interest on the loan. Personal loan interest is quite expensive, averaging over 20% per annum. It can even reach 40% per year. Rarely interest on loans without collateral only in single digit figures except in the middle of a special promo.
Personal loan requirements are not difficult
Why is personal loan product quite a favorite of customers who are in need of cash loans with a fast process? No other because the requirements made by banks for prospective borrowers is not too difficult. To know more clearly about what conditions should be met, you can contact or come directly to the lender of your choice. No less important to remember, some lenders may have additional requirements.