People apply for a personal loan for a variety of reasons, such as needing capital to purchase a car, cover home improvement projects, buy equipment to support a hobby, or repay existing debts.
Irrespective of your motivations, some loans will suit your purposes better than others, and it’s important that you narrow down your options until you find one that’s right for you.
If you’re considering taking out a personal loan, here are the three things that you need to think about.
#1: Borrowing Limits
The borrowing limits of different lenders can vary quite significantly. Most will offer up to about £15,000, but some lenders will go up to as much as £25,000. The amount you need will be dependent on what you intend to use the loan for, so take the time to work this out. If you need more than most borrowers, make sure you shop around to find someone who can provide you with as much capital as you need.
#2: Loan Terms
The borrowing limits will vary from lender to lender and so will the loan terms on offer. Some lenders will insist the amount you borrow is repaid in just six months. More typically, lenders will expect their money back within a year. Although personal loans can be a good borrowing option for those who need money for a period of years, credit card lenders can be a better choice if you only need to borrow cash short-term. If the terms of a personal loan or credit card does not suit your needs, then why not consider a secured loan lender like Nemo Personal Finance. Always consider that financiers such as Nemo secure their loans against your home so it’s imperative you ensure you can meet the repayments.
Personal loans are available from a number of different providers, including a variety of banks, building societies and supermarkets. With so much choice, you should take the time to shop around, making a shortlist of the companies or institutions whose packages seem well suited to your needs.
Follow our top tips today to find a loan that suits you!