A personal loan can be used to resolve a lot of financial issues in our lives. You can use it to pay of medical bills, holidays or a house renovation, that is just to name a few. What’s nice about a personal loan is that it is a non-secure loan, meaning, that you don’t need to secure the loan with any of your assets. No-body can re-possess any of your assets including your car or home. In this article I will describe briefly the advantages and disadvantages of a personal loan. I will also briefly describe on how to go about on applying for a personal loan.
Some of the advantages of a personal loan are that it can help to resolve a number of family needs, such as medical, educational and entertainment bills. It can also be used to buy consumables such as computers, a television set and refrigerators. It can even be used to pay for home extensions, -renovations and –improvements. Because it is a non-secure loan, your credit record and collateral security will not be considered, meaning that even if you are not a home owner or have bad credit, then you are still welcome to apply for a non-secure loan. The application process is also very easy and quickly. It is definitely a better option than to let a credit card fulfil your financial needs.
Some of the negative aspects of a personal loan are that the interest rates and fees are a lot higher than other types of loans, because you don’t need to secure them with any collateral items. The repayment structure is also vey strict, and if you don’t adhere to that payment structure, you can and will be charged with extra penalty fees, which are usually very expensive.
Thanks to the quick growing technology, it has become very easy to apply for a personal loan. There are literally thousands of personal loan companies in South Africa. In most cases you don’t even have to go visit their offices to apply for a personal loan anymore. Everything can be done via email or fax. Some of the companies will even offer to come visit you by your premises to come collect the needed documentation. In most cases all they need is a copy of your ID, proof of residence, three month bank states and pay slips. They will then check if the information is correct and if you qualify for the loan. Nowadays this process is quick because of technology.
If you have a bad credit score, then it's highly unlikely that you will get a loan. Get your credit score first and see where you can improve.
To conclude we can see that a personal loan is definitely a safe, easy and secure way of getting money quickly. So apply now for a personal loan to sort out those financial barriers that are waiting there for you.