Personal Loans for Small Expenses

What is a personal loan?

Personal loans are typically smaller-scale loans that assist you with a purchase or help you to consolidate any existing debt you may have. Personal loans come with a shorter loan term of one to seven years, and typically fast approval.

Who is a personal loan for?

There are several scenarios that could prompt you to take a personal loan, for example:

• A new car: If you need a quick vehicle upgrade, a personal loan could be a viable option.
• Wedding costs: Whether you need the ring to pop the question or extra funds to accommodate more guests – a personal loan can ensure your day is perfect…on paper.
• Travel costs: With international travel finally reopening, it could be time to start ticking the locations off that travel list you made in lockdown.
• Home renovations: A personal loan offers quicker access to funds that you can use to complete a small renovation or cover an unexpected repair to your property.
• Debt consolidation: A personal loan can be taken to consolidate any existing debt you may have into one loan, for more manageable repayments.
  
  

Potential personal loan features

There are several options on offer when it comes to your personal loan – depending on the type of borrower you are and whether you meet the eligibility criteria. Here are a few options you’ll have to choose from:

A secured loan:

Taking a secured personal loan means you will provide collateral (typically your car) to secure your loan. Choosing to do so often means your lender can offer you a lower interest rate as your risk is decreased.

An unsecured loan:

In contrast, an unsecured loan is a loan without collateral. Choosing not to secure your loan may mean you cannot access as much as you would have otherwise; it may also mean your interest rate is higher.

A fixed-rate loan:

Fixing your loan rate will allow you to pay the same rate for your loan’s duration, providing you with a set repayment, and making budgeting easier. Fixed-rate loans are advantageous in periods where the rate is low.

A variable loan:

Opting for a variable rate loan means that your interest rate is open to change over the course of the loan. This can be advantageous in periods where the rate is high; however, it does leave you open to further rate rises. Variable loans offer more flexible features such as unlimited additional repayments.

The next step…

If you are interested in taking a personal loan, get in touch with Rob.

Rob and the team can help you identify the best personal loan type for you, and help you attain finance for whatever costs are on the horizon.