Personal Loans Online

What is a personal loan?

Personal loans are just as the name implies – a loan for personal use. Some of our customers opt to use the loan to cover emergency costs, such as hospital bills or home repairs, while others use the money to take themselves away on vacation. You may even use the loan to cover previous debts. How you use the money from a personal loan is up to you. However, it is advised not to commit to a loan amount that you feel you will not be able to pay back. Generally, a consumer takes out a personal loan to cover a significant expense. That loan will then be paid back over several years, along with interest. If a consumer has smaller monthly costs that they need help covering, a credit card may serve the purpose better. Even if you prefer to avoid the rolling costs of a credit card, and use a personal loan as your preferred choice of financing, ensure to have a plan to pay back the owed money.

Personal loans are usually unsecured loans. What this means is that, because the lender has no security, you will have to pay back the amount at a higher APR (usually between 6% and 36%) when compared to a secured loan, with a lower APR, that uses an asset as security against the loaned amount (a mortgage for a house or an auto loan for a car, for example.)

Failure to pay back the loan and interest can result in late fees and may also result in legal action. You may also be charged an additional fee for paying off your loan too early. The loan provider will outline such terms in their terms and conditions. Along with late fees, you should also look out for origination fees. These fees are a one time fee that some loan providers charge for processing your loan. If additional fees apply on top of the interest owed and loaned amount, they are generally included in the APR of the loan. All of these fees should be taken into consideration when comparing your loan provider options.

When will I get my money?

Receiving approval from a loan provider can take only a few minutes. Though time is of the essence, the fastest you will receive your loan will be within one working day. Receiving your funds on the next working day is not guaranteed and will differ from lender to lender; however, rest assured that your loan provider will work as quickly as possible to get your money to you. Your first loan repayment is usually required 30 days after you have received your money. Payment terms are subject to the loan provider’s terms, so consumers must ensure to read the terms and conditions carefully before committing to a loan.

What is APR?

When exploring your loan options, you will come across APR. The APR or Annual Percentage Rate of a loan is any fees, interest, and additional costs you need to pay, put together and represented as a percentage, excluding compound interest.

If you were to borrow $6,000 on a loan term of 24 months with an APR of 13.9%, you would have to make monthly payments of $288. In terms of interest, you would pay an additional $912 on top of the $6,000 loan. For your loan, a personal loan calculator will help you calculate how much you can borrow and how much you will need to pay back.

You will find both fixed and variable APR rates. A fixed rate means that the interest rate that you pay will not change for the duration of loan repayments. A variable rate is the opposite, with the interest rate subject to change. The actual rate, amount, and terms of the loan will depend on the loan provider, state of residence, and your credit score. The loan providers will perform a credit score check to help set the terms of your loan. The better your credit score, the better the terms you can secure. You may receive a loan even with a poor credit score though you should expect a higher APR against the borrowed amount. A credit score of 700 or more is generally considered good. BankingDeal recommends that you thoroughly read the terms and conditions of the loan provider before accepting any loan.

Does BankingDeal charge any fees?

BankingDeal does not charge its users fees, nor will you be charged a fee for submitting your information to loan providers. Additional fees that you do have to pay are represented as part of the APR rate offered by the loan provider. If not, they will be outlined separately in the terms and conditions of the loan. BankingDeal does not influence these fees and cannot predict the fees that come with your loan. At no point before accepting the loan, are you under obligation to accept the terms and fees of the loan.

What if I don’t want to commit to my loan options straight away?

Committing to a loan is not always an easy decision. There are many pros and cons to be considered before borrowing money- can you pay it back, is your expense worth taking out a loan for, is this the best deal you can get, etc. You can seek pre-approval on your loan, meaning you have placed an interest, and then the loan provider will hold the offer given, but you are not yet fully committed to any single loan provider.

Requesting pre-approval will result in a soft credit check, which won’t affect your credit score. You will have the chance to secure a selection of offers you deem best suited for yourself. Once you have found the offer you wish to accept, you can make a formal application to the loan provider. Doing so may require the loan provider to be given access to personal information such as your current employment status, your credit reports, and verification of your income.