You are in a desperate situation; you need money for an emergency and you need it as quickly as possible. You go to your bank manager and request for a loan. The manager will not say no, but he will hand you a bundle of form to be filled and submitted within a week for processing, the papers will be processed in a time which may expand up to a month. Your emergency does not allow you even 10 days. If you approach some other means in the market, you may be required to mortgage some valuable property as collateral, which may not be possible in the emergency or you may not own one.
Remember there are means developed especially to provide money to those who are not in a position to meet the requirements of banks or the money lenders asking for collaterals. If your requirement of money is not more than $15000, “Personal Loan” is available at affordable and low rates to borrow.
You may require money to solve certain problems or to pay expenses occurred on medical bills, marriage of near and dear ones, school/college/hostel fees, an excursion trip or a holiday. The loan you get can also be utilized to clear your debt obligations.
Personal Loan is acquired without any guarantees, that is, no collateral is mortgaged. The lender wants to reduce the risk, so the lender would like to see your earning status, bank statements of last 3 0r 4 months, or annual income proof and home addresses etc will be required. Your Credit History is the most important aspect to obtain Personal Loan.
Personal Loan is a short term loan and is planned to be paid back within a period of up to 10 years. The period of repaying depends on the amount of loan. The amount to be borrowed depends on your ability to pay back and your credit history. Borrow an amount which you can pay back easily, this will help you to build a good credit history. Remember, apply for Personal Loan only if you have a good error free Credit History.