Personal loans are the loans for fulfilling your personal requirements such as home improvement, higher education, debt consolidation, buying a car, holidays, etc.

Apart from the reasons mentioned above, these loans are also used for business purposes. The two categories of personal loans are secured and unsecured personal loans. The difference between them is that secured lans are offered against a collateral while the unsecured ones have no such collateral or guarantee. Thus secured personal loans are issued against some security. The unsecured loans are not secured.

Unsecured loans are also less in amount in comparison to secured loans. Since the secured loans are offered against collateral, say property, these often measure up to the value of the property plus some additional amount. The unsecured loans, on the other hand, are more secure for the borrower because there is no chance of losing the collateral. Thus, secured loans are riskier than unsecured loans because unsecured loans do not have any risk of repossession.

Borrowers with bad credit record can also apply for personal loans. Personal loans offer a large sum but it is preferable to calculate the amount you require. Taking loans larger than the required may cause problems like debt burden, bad credit, etc. Gratify all your needs and demands with personal loans.

Different types and amounts of personal loans

There are variations in the amounts borrowed by unsecured personal loans' debtors. It actually depends upon the necessity of the borrower. One can borrow small amounts for instant necessity while big amounts are needed for business or say home needs etc. The small loans are also called the fast loans for the quality of being cleared faster.

Small amounts: An unsecured personal loan is also known as cash advance loan, short term loan, payday loan or pay day advance, fast cash loan and private or bad credit loan. The unsecured personal loan is a small, unsecured, personal cash advance that ranges from $100 to $1500 dollars (in the ranges of $300, $500, $100, $1000 etc).

Big Amounts: Usually individual or start-up business can get loans between $10,000 and $150,000. A business which has been operated two or more years can be able to get an amount between $15,000 and $250,000. The amount offered is decided considering a number of credit factors. The interest rate on these personal loans varies according to borrowers credit situation and the lenders policy. The interest rate usually varies between prime +2% and prime +9.99%, while the overall average interest rate remains between 9.99% and13.99 percent, normally.

Time taken for an unsecured loan to be cleared

Initially, it takes nearly 24 hours for a creditor agency to verify the credit situation of the borrower. If the pre-qualification criteria for the program are met, which is different for different creditors, the loans usually gets approved in less than 48 hours after one decides to proceed.

The conditions which are taken into account while considering the credit situation may be bankruptcy in the last 10 years or any unpaid collections, charge-offs, tax liens, repossessions, or serious late payments in the last 7 years. Being clear of all these criteria one can apply and easily get a personal loan.

However there are chances of being rejected or denied to get the maximum stated amount of loan.

Rescission period

The rescission period is a mandatory process requirement, initiated by the Federal Law Department. This is a waiting period of three days excluding Sundays and legal holidays, between signing the Fee Agreement. During this period one can re-consider, and perhaps void the transaction.

Fast personal loans, usefulness and guidelines

Fast personal loans are exceedingly useful in emergency situations, unexpected expenses and temporary financial problems or crisis. In case of need one can just borrow some amount from the bank while paying back the amount in the next pay day. One has to pay through checks. The electronic checks or e-checks- perform automatic withdrawal from your account after your paycheck has been deposited.

Typical requirements are 1) Regular monthly income (but this varies with company.) 2) Age proof (over 18 Years). 3) A limited number of insufficient funds or returned checks on your bank account in the last month and 4) No outstanding personal loans.

However precautions are necessary while applying for a personal loan. Check out 3 or 4 personal loan companies to compare rates and requirements so that you can get the best bet. Then try to make sure the company is legit. Although, most are, some are not and may try to get your personal information during the application process. Beware while providing PIN numbers. A check on overspending on these payday loans is necessary to stop yourself from unnecessary debt.

Where to find the loans

You need money and you need it now! Personal loans abound and they are one solution to a crisis situation. Is a personal loan right for you More importantly: exactly what are your options Read on and Ill show you the way!

Payday Loans: Payday loans are useful only if one is planning to pay it back within a few days. Otherwise, it might get costlier.

Cash Advances: Credit Cards are another way for you to secure a personal loan. It contains a cash advance feature which helps to borrow a few hundred to a few thousand dollars. Though the interest rate is high, it is useful if you plan to pay back quickly.

Equity Loans: Some houses have equity on it and for that some lenders can approve you a loan the spot for that. However this is too much a costly affair, since the rates are often high and one should not risk own home for some bucks only.

Friends, Family Members: Surprised that your relationships come into play. Try it. This is the best way to get a zero interest loan which is unavailable anywhere else.

Retirement Funds: Though it is not easily possible to get retirement funds within three days time, but borrowing from your 401(K) can be helpful. However, if paid late, there must be some tax penalties which far more than undesirable. Moreover, your accounts might look leaner than required when you retire.

Conclusion

Though there are various sources to find personal loans it might be well t remember that loans should be taken only when extremely necessary. In any case, you pay more than you borrow.