VOLUME 29 NUMBER 1
LendingWorld: Personal Loans Available Now for Citizens & Their Businesses
2,621,100 dollars - this is the total value of loans granted by banking and non-banking financial organizations during February 2022. According to the same report presented by the NBM, about 54% of these loans were offered to legal entities. Respectively, it is about a value of corporate loans higher than 1.3 billion dollars for February alone.
However, now personal loans are available for all Americans and their business if they want to invest in them. Consider this article a new discovery about personal lending and find out how to get a long-term loan for your needs.
Personal loans - investment or risk?
According to PwC AmCham Survey Report, 18% of Americans and their companies are willing to take out personal loans in the near future. Thus, practically every 5th citizen analyzes the credit opportunity as an investment tool and/or a tool to reduce the impact of the pandemic.
When you look at the option of taking out a bank or non-bank loan, below we describe some of the main fears that most entrepreneurs face when deciding whether or not to take out a personal loan.
Types, Terms & General Requirements for Personal Loans
There are many different types of personal loans, but one of the most widespread is a long-term installment loan. Consumers may get from $5,000 to $15,000 with a maximum term of 36 months. So, here are other types of personal installment loans:
- Home renovation loans
- Car title loans
- Travel loans
- Mortgage loans
- Student loans
- Debt consolidation loans
- Medical loans etc.
The costs of each loan vary by consumers' current credit and financial situations. To be entirely informed, consumers' are recommended to ask for more details from their lenders.
How to Get a Personal Loan?
Most banks offer loans to American citizens and their businesses that have been around for some time and to start-ups. Personal loans can be obtained both for the purpose of raising capital and for personal investment purposes. To obtain personal loans for your financial needs, you will need to complete the following steps:
Choose the lender
Analyzes both banking and non-banking institutions. Draw attention to the eligibility criteria to find out which institution you can get the credit you need. Also, consider the amount and maximum loan period to determine which institution might cover your needs. Last but not least - compare interest rates and choose the institution with the lowest rate.
Once you have made the decision regarding the credit institution with which you will collaborate, find out the set of documents that it requires in order to issue your personal loan.
By preparing all the documents in advance, you make sure that the process of analyzing your application will proceed without restraint caused by the lack of certain documents. Also at this stage, it would be good to draw up a business plan for your business if you aim to invest the money in it.
Put collateral if needed
Financial institutions often ask for collateral for the requested personal loan. As collateral, you could offer a real estate, car, title deed, or any other object with a certain value.
Apply for a personal loan
Once you have prepared the necessary set of documents, based on the current situation, a large part of the financial institutions offer the possibility to complete the application at a distance. If the lender you have chosen offers this option, you may want to take advantage of it. After all, there is no difference between an application filed in person or completed and shipped online.
Analyze and sign the credit agreement
The contract stipulates all the terms and conditions of the relationship between your business and the financial organization. Before signing the contract, make sure that you have read it in its entirety. You could ask the financial institution for a draft of the contract you are about to sign. That way, you can analyze it exactly as long as you need it.
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