• Home
  • About
  • Recommended Reading
  • Disclaimer
  • Privacy Policy
  • Advertise / Contact

Invest It Wisely

Maximizing your EV in life

  • Home
  • Growing Your Wealth
  • Small Business Solutions
  • Healthy Living
  • Miscellaneous

Things to Consider About Personal Loans

By Mich

paid balance clipartIt seems like personal loans are the choice number one nowadays. When things don’t go according to the plan, or simply when it’s hard to make ends meet, the first thing that falls on our minds is personal loans. They are like the easiest solution to our problems. It doesn’t take a lot to receive one, and you get the chance to decide the tempo and the duration of disbursement. Personal loans can be received from both financial and non-financial institutions. You’re getting the required amount in less than 48 hours.

Build Credit Score

As already mentioned, the first thing to think about is why you need that loan in the first place. Some loans require that you have a clear track of your credit record. The lender does a track of your previous credit record and when you have a bad credit score, it makes you ineligible to receive the loan. The good news is- you can still gain the right to receive credit builder loans. In such a situation, you should definitely give the chance loans to help you build your credit. These loans are there to improve your credit score.

In other words, it’s very important to evaluate the real needs of your business. It’s a good idea to have some extra money, but you need to bear in mind the fact that you need to return that money in the given period of time to the financial institution that landed you the money. Responsible spending is the keyword to help you balance your finances and the regular business costs you need to cover every month.

Loans

Sometimes, it takes around 7 days for the bank to process the loan. The procedure time might vary from bank to bank. Before you decide on borrowing a loan, you should have a clear idea about why you need the loan in the first place. You should consider carefully the conditions and estimate whether you will be able to return the money to the bank in the given period of time. Here is a list of important things to consider before you decide on borrowing some money for your business company.

Costs

The costs related to the loan are different in every bank or any financial institution. Generally, they depend on the amount of money you’re receiving and how long you’re going to disburse the loan. The interest rate for personal loans varies from 18-24%. In some cases, borrowers need to pay an additional 1-3% for loan processing. Some loans require a pre-payment of 2-5%, usually when it comes to short-term loans. To have a clearer idea about the costs, you need to check out the conditions mentioned in the contract.

Tenure

Generally speaking, the longer you’re disbursing the loan, the lower the interest rate. However, the conditions are not the same in every bank or financial institution, so it’s a better idea to consult with a professional about the loan conditions. Some lenders offer a flat interest rate for longer tenure loans, usually between 12 and 18 months. When it comes to costs, short-term loans seem to be more cost-effective than long-term loans. The EMI amount in short-term loans is higher than usual. Bear in mind the capacity of your business to return the money in the given amount of time.

Related Posts Plugin for WordPress, Blogger...

Filed Under: Paying Down Debt

About Mich

Mich is your typical middle class guy with a house and 2 kids minus the dog. He works in the IT industry and likes to muse about how to achieve more for less when it comes to money.

About Invest It Wisely

Invest It Wisely is about evaluating the choices that each of us face everyday. It’s about investing your time, your money, and your energy wisely, in order to achieve your goals. The end goal is maximizing your life expectation, and exploring the ways to get there.

Subscribe!

Subscribe via RSSSubscribe via EmailSubscribe via TwitterSubscribe via Facebook

Most Popular Posts

  • How to Get Fit, Feel Better, and Get Rid of Your Foggy Head: A Few Simple Steps
  • 3 Frugal Ideas for a Romantic Valentine’s Day
  • What Would You Do with a Million Dollars?
  • The Importance of Opportunity Costs, and Why They Should Not Be Ignored
  • What Do You Need to Get out of the Rat Race and Achieve Financial Freedom?

Categories

  • Avoiding Scams
  • Book Reviews
  • Crypto Trading
  • Currency Trading
  • Economics
  • Financial Freedom
  • General Reviews
  • Growing Your Wealth
  • Healthy Living
  • Insurance
  • Interviews
  • Investing
  • Market Analysis
  • Miscellaneous
  • Motivation
  • Opinion
  • Paying Down Debt
  • Philosophy
  • Precious Metals
  • Reader Questions
  • Real Estate
  • Relationships
  • Saving Your Money
  • Small Business Solutions
  • Stories
  • Uncategorized
  • Weekend Reading

Archives

Invest It Wisely Copyright © 2016
Creative Commons License
This work by Invest It Wisely is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License
Permissions beyond the scope of this license may be available at http://www.investitwisely.com/contact