The personal loan, unlike all other Installment loans, requires no proof or invoice from you to justify the loan. We will review the specifics of this loan, and see how to get it.
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What is a personal loan?
The personal loan is also known as an installment loan. It finances the purchase of various consumer goods or the carrying out of projects.
The installment loan has a particularity, however. Indeed, one of the advantages of this loan is that you will not have to provide any proof of its use. This is the main advantage of the personal loan.
The personal loan is described as “unrestricted”, as opposed to the restricted loan which finances the purchase of a specific asset (car credit).
It will therefore allow you to finance a personal project, increase your cash flow, undertake work or face a hard blow. But there is the other side of the coin. If the personal loan is the easiest to obtain, it is one that will cost you the most.
Indeed, the bank considers that as it has no proof from you, as for the use of the money it lends you, it takes a greater risk.
The interest rate (APR) for the loan that it will grant you will therefore be higher than for loans that are described as “affected”, that is to say loans that are subject to obtaining the provision of supporting documents for purchases.
One of the other disadvantages of the personal loan lies in the fact that the monthly payments are due to the signature, and not to the obtaining of the property.
Why apply for a personal loan?
Before applying for a personal loan and installment loans, it is best to study the various borrowing options that you could take out, and which would be more advantageous than a personal loan.
For example, a car loan may be more suitable than a personal loan. Indeed, the car loan is conditional on obtaining the vehicle (and vice versa ).
You are protected from the seller (if the credit is not obtained the sale is canceled). On the other hand, reimbursements will start from the moment you receive the vehicle.
To borrow small amounts of money or want to get the cheap installment loan, it is sometimes better to choose simpler solutions which can be less expensive. For example, a credit card with deferred debit, a reserve of money or a credit card.
Conditions for obtaining a personal loan
Almost anyone can take out a personal loan. There are however three conditions to be fulfilled to claim it:
- Being older than 18 ;
- generally be a resident of the country where one borrows;
- receive regular income.
- Simulate your credit online and receive loan offers
- It is now possible to simulate your borrowing conditions online, or even to take out a loan.
You can find information online about the various lending institutions and banks offering personal loans.
Making your request is very easy, and the saving of real time and consequent. No time wasted going to the bank!
A basic answer will be given to you very quickly. You will then just have to provide various supporting documents to the bank (identity, income and taxation) and then return to the bank, the loan offer signed. The funds will be deposited into your bank account.
The other advantage is to be able to simulate and compare the different offers offered by banks and credit institutions. You can do as many simulations as you want, until you find the most suitable formula for you, i.e. the balance between the amount borrowed, the monthly payments and the interest rate.
Do not hesitate to play the competition, to try to look for special offers which could give you the most attractive APR. Likewise, explore all the financing solutions (earmarked loan, credit card, money reserve) to find the one that best meets your needs.