Personal loan rate of interest varies from person to the person because some lenders have a strong relationship with the institution. For a low interest rate, a person should opt for a secured loan. A person guarantees the loan with some collateral and thus lowering the interest rate while taking a secured loan. Unsecured personal loans have no issues of providing collateral with higher interest rate and high risk.
Peer lending is the new way by which a person can guarantee his personal loan. Peer lending, mostly done between lenders and institutions online with the help of peer lending institutions. The loan amounts not need to be secured, and it does not ask for the customer’s credit score. SEC controls Peer lending to ensure its authenticity. The main advantage of peer lending is – it has no paper work and a person can get hold of money instantly.
Using loan calculator helps the person to reduce the monthly repayments. These companies are accessible on the internet and the person just has to enter the amount to be borrowed, the interest rate and repayment options.
Since different banks had different rates, person should consider as many of them as possible. Person can compare lenders and their interest rate easily on the internet. Comparing interest rates online is convenient because person do not have to leave home or office. It is also cheap as there is no travel involved, and the information is available free of charge. Person can compare hundreds of lenders and chancing of getting a fair deal is more.
When getting a loan, it is essential that person should not consider the rate only. Person first looks at all aspects of the agreement reduce the risk of getting cheated and incurring hidden charges. Person should have an accountant go through the agreement if the lingo is too technical.
