Personal loans are offered by a variety of banking and other financial institutions. The reasons for one to require a personal loan vary from wanting to buy a Television, paying school fees or paying off a variety of other debts for example. Personal loans generally have a quick turnaround for one to find out whether their loan has been denied or accepted. The applications for personal loans are generally shorter in length although they do need to be followed by a credit history to motivate acceptance.
Personal loans are thus popular amongst people who are looking for relatively small amounts of money to be paid back in a few years. There are also a variety of online platforms that offer personal loans that usually need to be paid back in a few weeks or months. These types of personal loans are usually very small and require less information from lenders. Personal loans of this nature can clear in 1 – 3 business days.
Personal loans can also be used for purposes such as consolidating debt such as that which one has accumulated with their credit card. Personal loans usually have fixed rate interest rates although these rates may be higher than that of the other types of loans. Personal loans may also arise informally from friends and family though it is always advisable that some form of paperwork is signed.