Consumer or personal loan?

Now-a-days people are changing with the world, everyone wants to live a luxurious life. Staying in a fantastic furnished house, roaming in the brand-new vehicle, wearing top quality garments etc. But do you think that everyone has enough money to spend to fulfill his or her dreams. Well, it is not possible and not easy to lead such a life. Not everyone is rich, however these days you can get various methods where they can attain money if and when they want and fulfill their dream.


Yes, you are guessing it right; it’ s nothing but the agencies that lend money, in a way of different laan. These financial institutions or lenders lend short-term banklån and help people financially which are termed as either “Personal Laan or Consumer Loans”. The description of private lån or Buyer bank lån could be merely, money lent to the people generally on unsecured basis for private use for purchasing goods or paying for urgent expenses at any moment in life. Much more on these kind of lån over at online bank laan



Some examples:



Buying top quality accessories, laptops, hifi systems, Planning a family trip or vacation, repair of the house or vehicle, wedding costs, education fees, Medication (Need funds for unexpected emergency medication), payment of medical bills or treatment , Require a little sum of money to cover the loss or petty expenses in the business etc.



These lån are usually monitored by government regulatory agencies for their compliance with consumer protection regulations such as “truth in lending “ law.


These laan are risk-taking loans. Mainly for lenders, because they do not go for any security and totally rely upon the debtors guarantee to pay it back. And thus, as the risk is bigger than with the secured loan, these banklån holders need to pay high rate of interest. As I believe, easily available things come with a huge cost. The payments or the payments period is fixed just in case the installment is not paid in time the penalty is usually excessive in respect of these bank laan. Also, there are companies who penalize you if you clear the laan before the agreed time period. For example: If your banklån term is three years and you've got cash handy and would like to repay the loan after 2 years, you're fined for doing that. Each company has their set interest amount charged on repayment of laan before due date.


These plans are extremely expensive as well as much less versatile as compared to secured bank laan, but are ideal and beneficial when you need a short-term loan on emergency basis.


In foreign countries such as UK and America people have to show a good credit history to get a personal laan.See how you improve your creditscore on Bank laan


There are different interest rates charged on personal laan, which vary from bank to bank. There are 3 primarily types of interest rates that are normally offered to the clients for example Fixed interest levels, floating interest rate & Flat rate. Flat rate is comparatively expensive than other two types of interest rates while the others are worked out by applying decreasing balance method.