How much do you know about personal loan?

More flexible than a home loan, easier to use than an appropriated loan, the personal loan is a type of loan that offers many benefits to its beneficiaries. Here’s a quick overview of personal loan. Click here for Licensed Moneylender.

What is a personal loan?

The personal loan is a credit belonging to the category of consumer credit by which a loan is granted by a credit institution or a bank to a borrower.

Characteristics of a personal loan

The personal loan is characterized by

A freedom of assignment

Unlike other credits, it allows you to buy the property of your choice or consolidate your credits, without obligation of justification from the bank or the bank. Financial institution. However, you can get better conditions by motivating your needs.  Visit EasyCredit.com.sg to get loan.

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A fixed rate

A fixed rate is established. In general, this one is quite low and more interesting than a conventional consumer credit. The advantage is that the monthly payments will be identical throughout the life of the loan. So you can anticipate the cost.

A free amount

The amount of your credit is not taxed. Nevertheless, the protection of the consumer is greater up to the sum of 21500 €, in particular on the right of retraction, the conditions of repayment anticipated … It is thus preferable to use it for sums lower or equal to this ceiling.

A loan to use without supporting documents

Unlike real estate loans, which are used to finance a real estate project, the personal loan is characterized by the fact that it is not dedicated to a particular project. This means that the beneficiary can use it as he sees fit, without providing proof to his bank or credit institution.

The personal loan can be used for various projects such as recreation, a vehicle, housing, or even simply to increase its cash to avoid.

How does the loan repayment work?

Like any loan, the personal loan requires the subscriber to repay the amount borrowed, but also all ancillary costs such as loan interest, insurance costs or records.

In concrete terms, the borrower undertakes to repay each month, at fixed or variable maturity, a portion of the capital borrowed, as well as the interest that constitutes what is called the cost of credit. The portion of the capital and the interest on this part of the capital are grouped together to constitute the monthly installment to be repaid.

A loan that can be repaid early

Entering a personal loan can be interesting for borrowers who have some visibility into their future repayments. The repayment of a personal loan can be made in advance as well for a partial refund as total.

This reimbursement will generally be made in return for a penalty, the amount of which may not exceed 1% of the amount of the credit when the duration remaining to be covered is greater than 1 year, and 0.5% if the remaining term to be repaid is less than at 1 year.