What is a Personal Loan and what can I use it for?
A Personal Loan is a loan usually meant for personal, family or household purposes. These types of loans are unsecured, meaning that it is not necessary to have any form of collateral such as property. All that is required is proof of your identity and a regular source of income. Personal Loans are typically repaid in fixed monthly payments.
There are no specific limitations on how a personal loan can be used. Once you’ve been connected with a lender, you are free to use the funds as you desire. Below are some common uses:
- Debt Consolidation
If you are carrying a large amount of debt from previous loans, a personal loan can be used to consolidate your payments into one easy monthly payment with lower interest rate. Doing so can save you lot of money.
- Repairs and Renovations
Been putting off a major repair to your car or home? Or are you in need of renovating your kitchen to increase its value? A personal loan can be used to get the job done under affordable terms you are able to handle.
- Major & Unexpected Expenses
Life’s unpredictability can have a serious impact on your finances. Unexpected medical bills, major car repairs or an emergency can all be reasons to utilize a personal loan.
- Personal Needs
The beauty of a personal loan is that it is completely flexible. There are no restrictions to what you can use it for.