A home loan is often the first thing that springs to mind when we talk about loans, however we can also assist you when it comes to personal loans. Let’s take a look at what is a personal loan and what you can buy with it - as well as all the ins and outs of drawing down on this type of loan.
What is a personal loan?
A personal loan allows you to borrow an agreed amount of money over a certain period of time. This money is paid back in fixed scheduled repayments and is made up of the principal amount (the original amount you borrowed) and the interest (the amount charged for being able to borrow the money). Loan terms, payment frequencies and interest rates can differ greatly depending on the lender, which is why it’s important to get the right advice
What can I buy with a personal loan?
Pretty much anything! Personal loans are often used for things such as;
Buying furniture or other household necessities
Buying a new vehicle
Going on holiday or unexpected travel
Paying for a wedding or event
Home renovations or house maintenance
How much does it cost to get a personal loan?
This depends greatly on the lender and the type of personal loan that you choose. Some lenders charge an application fee, while others don’t.
Rates often start around the 10-12% per annum mark and can range up to 25%+. It’s important to do your homework when taking out a personal loan to ensure you don’t end up borrowing more than you can afford - that’s where we can help.
Personal loans are also a good option for those looking to consolidate their existing debt. This allows people to consolidate debts such as credit cards, store cards, hire purchases and other personal loans into the loan with one repayment. It can make managing and repaying debt much easier and often more affordable.
If you would like to discuss getting a personal loan in depth, then get in touch with our Better Choice team today. We can walk you through the process of taking out a personal loan and what loan structure will best support your needs and repayment goals. Contact us on 0800 005 676 today