All You Need to Know About Personal Loans
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Signature loans, sometimes called personal loans or unsecured loans, allow flexible use, offer short - to moderate - term repayment options and quick funding. Their versatility and convenience make them popular for borrowers of every financial standing. Let’s take a deeper look at personal loans along with their pros and cons.
How personal loans work
If you’re interested in a personal loan, visit your nearest Ascend branch in person or fill out an application online and, pending approval 77, you can walk away with the lump sum you requested in one to three business days. You’ll need to repay the principal of the loan, along with interest, over the loan’s term, which can be as short as six months or as long as five years.
Unlike most other loans, like home and auto loans, personal loans are not intended to be used for a single, specific purpose. Once the money is in your hands, you can use the loan in any way you please.
Pros of personal loans
There are several distinct advantages to borrowing money through a personal loan.
First, as mentioned, personal loans give you the unique freedom to spend the funds in any way you’d like. Second, personal loans are unsecured, which means there is no asset backing up the loan or at risk of being repossessed if the borrower defaults. Finally, obtaining approval for this type of personal loan tends to be a lot faster than it is for most other loans, and can happen in 24 hours or less.
Cons of personal loans
There are some disadvantages to personal loans that borrowers should be aware of before going ahead.
First, as unsecured debt, personal loans that are not secured by any collateral will likely have a higher interest rate than an auto or a home loan. Also, the amount of money you can borrow through a personal loan may be significantly less than the amount you can borrow through other loans that are secured.