Benefits of a Personal Loan
With the various types of loans available on the financial market, it can be a bit confusing to understand exactly what you can do with the loans available. By the end of this short guide, you’ll have a better grasp on the concept of a personal loan, and what you can use it for.
A personal loan is a short-term loan available through many financial services, this includes banks, building societies, brokers, financial services, and lenders. By definition, a personal loan is a loan that you can use for a number of individual reasons, not only limited to personal expenses that you may not be able to finance at this point in time.
Personal loans have been used as small bridging loans, for short-term borrowing, for unforeseen financial matters (like breakdowns), and even for residential development. The most common uses for a personal loan are debt consolidation and home repair, though it isn’t particularly advisable to use one loan to pay off another one.
Unlike commercial or business loans, you don’t need to provide any collateral or security deposits to receive a personal loan. It’s an unsecured loan where you can choose the amount you borrow, and then pay back over a set number of months with the financial company’s interest rate attached. For first4commercial, the APR on personal loans are competitive; with larger amounts (above £15,000) having a rate of 8-10%, middle amounts (of £5-15k) having a rate of 6-9%. Smaller loans can actually have a higher interest rate.