Many Americans know what a personal loan is and actively use this banking service. The term personal loan means a certain amount + interest that the client borrows in the bank to pay for any product or service. Let’s take a closer look at what a personal loan is, how to get and use it.
A personal loan is convenient!
A personal loan can be given for any client’s needs in cash or credited to a debit card. It can be approved with or without collateral. The loan processing can be standard or very fast. For the majority of the population, personal loans are additional financial assistance in solving urgent problems.
5 reasons to get a personal loan:
- unforeseen financial difficulties have arisen when additional funds are urgently needed;
- you work on a rotational basis, the nearest paycheck is still far away, the only option is to get a loan – this will provide you with the necessary funds until you receive your next paycheck;
- an additional amount of money is needed for expensive treatment;
- you need funds for rest on vacation;
- it is necessary to make home repairs.
Each lending institution offers personal loans on its own terms.
In order to choose the best option for a personal loan in Georgia, you can use a lender matching service – georgia-ssbci.org. After you submit an application, the site will give you all the offers that match your request. You can get more detail by clicking on the tab with the description of the loan.
If you are applying for this loan, pay attention to all the terms of the agreement with the bank.
- Find out if a personal loan has hidden fees. As a rule, serious banks with a good reputation do not charge hidden fees, but in any case, it is better to play it safe and read the agreement carefully;
- Find out the interest rate and the full cost of the loan, including the amount of the final overpayment (these items are usually indicated in a separate section of the contract);
- In order to protect themselves from debt non-payment, many banks put compulsory insurance of life, health / working capacity of the client, collateral as a condition for getting a loan. Credit risk insurance can be a separate item – as a rule, it is used when applying for several loans by one individual. In order not to pay the insurance amount in addition to personal loan, find out if it is mentioned in the contract and whether it is possible to refuse it;
- Check the amount and term of monthly payments and strictly follow the payment schedule. If it is impossible to timely deposit funds to repay the loan, promptly inform the responsible bank officer about this in order to find a compromise solution.
Unlike a targeted loan, the bank in this case will not check what the funds were spent on. In some cases, a non-purpose personal loan is given in cash, in others, it is credited to a debit bank card, from which you can withdraw money from ATMs and spend it at your discretion.
How to apply for a personal loan?
The conditions for getting a non-purpose personal loan may be different for each banking organization. But as a rule, in addition to a mandatory written application and an ID indicating the US citizenship, the following standard package of documents is required to apply for this loan:
- SSN, driver’s license or other identity documents;
- proof of income;
- military ID for men subject to military conscription;
- documents confirming the ownership of property – when using collateral forms of consumer lending.
This is not a complete list. The larger the amount of personal loan, the more additional documents the bank may require.
Pros and cons of personal loans
Consumer lending has both positive and negative sides, so the decision to take a particular personal loan is always yours.
Key advantages of a personal loan:
- you can use funds immediately, without wasting time on saving up the required amount;
- you can make a purchase at a bargain price, without waiting for the rise in price of goods, including goods for promotions/sales;
- you can have time to purchase goods, the number of which is limited;
- many lenders provide loan 24/7;
- you can often apply online without going anywhere;
- if a personal loan is repaid in installments, this will reduce the financial burden on your budget since you will not have to pay the entire amount at once.
Disadvantages of a personal loan:
- you will have to pay interest for using the loan;
- you may not like the product, but you still have to pay in installments for a certain time;
- if you delay payments due to unforeseen financial problems, this may damage your credit history.
So, we examined what a personal loan is. Before resorting to consumer lending, assess your financial capabilities for the entire maturity of the loan. georgia-ssbci.org will help you find the best loan offer. If you decided to get a loan, we advise that you not only read the full information about it on the bank’s website, but also contact the company and ask them all your questions. If everything suits you, you can apply for a loan online or come to a lender’s in-store location.