Personal Loan: Monetary Assistance For All

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Published: 20th August 2017
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The Benefits of a Personal Loan

Take a trip to the Bahamas, make some home repairs or buy new appliances all with a personal loan.

What’s a personal loan?

A personal loan is a loan that is designated for personal expenses. They are a great option if you need a lump sum of money quickly and can afford to make the monthly payments. Two types of personal loans are available, including secured and unsecured loans. Here is a brief description of each:

● Secured Loans. These types of loans use collateral, such as a home or car, to back up the loan. Some of the advantages of this type of loan include

○ Lower interest rates
○ More flexibility on credit history
○ Less restrictions on employment.

● Unsecured Loans. An unsecured loan doesn’t require you to put up collateral. All you need is a signature as your promise you will pay back the loan in full. There are several benefits to unsecured loans, such as:

○ You don’t risk losing personal assets
○ Good option if you need to borrow only a small amount
○ Can normally be obtained without having many assets.

Immediate Funding

Personal loans typically have a quick approval process and lower minimums. In addition, they provide immediate funding for your needs. Typically, you can access your funds the next business day after credit approval. This is especially helpful for those who need quick access to their money or to make payments on previously accrued debt.

Competitive Rates

Interest rates for personal loans are less than credit cards. Where as credit cards can have as much as 19% interest, a bank loan is negotiable.

The average personal loan interest rate is 10.52%, according to the Federal Reserve. You can get better rates by having a good credit score. To calculate how various interest rates impact your monthly payments, try our loan payment calculator.

Flexibility of Use

Personal loans are incredibly flexible and can used for many types of payments, ranging from travel expenses to medical expenses to home repair.

Additionally, personal loans make budgeting easy. Since they are generally paid back in fixed payments, you will know exactly how much you need to pay each month, giving you a better idea as to what you have left to spend in other categories.

Apply for Personal Loans

SmartBank has a variety of personal loan options. We offer installment loans, personal lines of credit, home equity loans, home equity lines of credit and more! To learn more about our personal loan options in Knoxville, contact us today at 1-866-290-2554.

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