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Benefits of Taking Personal Loan
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Posted On :
Jan-07-2012
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Article Word Count :
606
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Personal loans are short term loans. It is always recommended that the borrower must always read the terms and conditions of the lender and should be well aware about all the aspects of the same.
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Loans refer to the amount that is granted to fulfill a necessity or want. This amount is to be repaid by the borrower after a span of time. The lender of the loan charges interest on the amount of money that he grants as a loan. The borrower is supposed to pay the interest with the amount of loan in installments. Such loans are available by banks and also by all financial bodies. This is the most excellent feature of loans. It becomes easy for the borrower to apply for a loan since he doesn’t have to run to various places for the same.
Loans are of great benefit to the people who wish to buy several things but do not possess the funds that are actually required to suffice their need. Loans may be home loans, educational loans or personal loans.
Personal loans are mainly short term loans. Short term loans refer to the loans that are given for small amounts and are to be repaid in a short period which is mostly not more than three years. Technically, the loan that is given for personal, family or house related expenses is called a personal loan. The expenses may refer to any kind be it an air conditioner, education, washing machine, repairs etc.
Sometimes it’s possible that due to some other expenses you are not able to meet your personal expenses or maybe your income doesn’t allow you to spend on some items which are way too expensive. In such circumstances, it is always preferable to opt for a personal loan.
Personal loans can be secured or unsecured. Secured loans mean that they are given against a security while in unsecured loans there is no security. In secured loans the lender is at a benefit because on nonpayment by the borrower, he gets the possession of the security. But there is no such benefit in unsecured type of loans.
To get a personal loan an individual is required to meet the standard qualifications of the financial body or a bank. The applicant of the loan must be minimum 18 yrs of age, the income should be regular and he must have a security in case of secured loans. Also he must have a bank account. It is not necessary that the borrower will get a loan approved of the amount that he wants. The amount of the loan that is to be given is decided by the lender on the basis of the borrower’s income and the security that is made available by him.
The rate of interest is also calculated on the basis of income and the amount of loan as well as the term that is given for repayment. The total amount i.e. the principal with the interest is to be repaid within the given time. The principal refers to the actual amount of loan that is given.
The loans are given for even the smallest amount that is asked. Personal needs are quite important and even though they are sometimes for luxury, it is always to be fulfilled for inner satisfaction.
Personal loans are given for any sort of personal requirements, be it huge or petty.
It is always recommended that the borrower must always read the terms and conditions of the lender and should be well aware about all the aspects of the same. No decision should be taken in a hasty manner. The best offer should be taken into consideration as all institutions have their own policies. It should be seen that the borrower is at no loss while opting for any scheme.
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Article Source :
http://www.articleseen.com/Article_Benefits of Taking Personal Loan_130056.aspx
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Author Resource :
Gaurav Khurana is an expert on Personal Loans. He is the Founder Director of DIALABANK.COM (Call 60011600) and Ex National Sales Head – ING Investment Mgt India and Vice President Citibank N.A
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Keywords :
home loan, loan, personal laon, Life Insurance ,
Category :
Finance
:
Finance
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