What is a personal loan?
Who is eligible for a personal loan?
What is the difference between a personal
loan & credit card?
What can I use the loan for?
Can I repay my loan early?
What are some reasons I may be turned
down for a loan?
What does an inquiry for a loan do to
my credit report?
What is a consolidation loan and how does
When should I ask for a co-signer for
Q: What is
a personal loan?
A: There are two types, secured loans and unsecured
loans. No security is required for an unsecured loan,
but a secured loan, which is often for a larger amount,
will be secured against an asset, such as your house
or your car.
Q: Who is
eligible for a personal loan?
A: Personal Loans are available to anyone who has a
steady source of income. Any Individual can obtain a
personal loan as long as they are :
- Salaried individuals
- Self-employed professionals
- Self-employed non professionals
Q: What is the difference between a
personal loan & credit card?
A: Unlike loans against credit card, in a personal loan
it is necessary for the borrower to draw out the entire
loan and the loan is repaid by way of fixed monthly
instalments. In the case of a card, the interest is
charged based on the amount utilized only.
Q: What can I use the loan
You can use the loan for any legal purpose including
purchase of Time Share, Debt Consolidation, Home Improvements,
Q: Can I repay
my loan early?
A: Yes. All Lenders allow early payment and either apply
a sliding scale, or a rebate in accordance with the
Consumer Credit Act.
Q: What are some reasons I
may be turned down for a loan?
A: Often your credit history is why you are turned down
for a loan. If you are viewed as a risk, and your report
indicates that with prior creditors you consistently
made late payments or skipped payments or defaulted
on a loan, it will affect your score and may result
in your being turned down for the loan.
Q: What does
an inquiry for a loan do to my credit report?
A: Each time you apply for a loan with a financial institution,
they look at your credit report, and that inquiry goes
on your report and will negatively affect it if there
are too many inquiries within a short period of time.
Q: What is
a consolidation loan and how does it work?
A: A consolidation loan allows you to pay off several
creditors and pay the balance to one creditor. This
simplifies making monthly payments and can possibly
reduce interest rates, so you may end up paying less
than what you would have paid without the loan.
Q: When should I ask for a
co-signer for a loan?
A: A co-signer adds security for the bank or financial
institution that provides your loan. With a co-signer,
you may have a better chance of being approved for a
loan. That’s because your co-signer agrees to make payments
on your loan if you default. A friend or relative can
act as a co-signer.
Use one of our calculators
to determine how big of a loan you can receive.
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