A Short Guide to Personal Loans

Whether you’re a student paying for college, a young adult buying a car, or if you need to pay off an unexpected expense, it’s likely that you’ll take out a personal loan at some point in your life. Just like with most anything else involving money, it’s likely that you’ll have some questions. Below are some of the most frequently asked questions about personal loans, answered.

What is a Personal Loan?

Personal loans are a type of loan given out by banks or money-lending institutions that are used for a variety of things. These loans are usually smaller in amount, than say, a mortgage.

Like most loans, the lending institution will give the customer the loan amount in a lump sum, whether it be in form of a check or deposited in their bank account directly. From there, the client can use the money for whatever they took out the loan for. Also, like other loans, personal loans are usually repaid a small amount at a time each month, usually with interest added, until the entire amount is paid off.

Where Can I Get a Personal Loan?

Personal loans can be acquired nearly anywhere that any other type of loan can be gained. To get a personal loan, customers should go to their local bank or credit union. Personal loans are also available from money-lending organizations online, such as Simple Path Financial.

What are Personal Loans Used For?

Personal loans can be used for a variety of purposes, based on need or want. These loans are perfect for buying something or paying off something, that would be too expensive to put on a credit card, but would take too long to save up the money for in cash. Below is a shortlist of some of the things a personal loan could be used for.

  • College school books
  • Car repair
  • Home improvement projects
  • Medical bills
  • Vacations

Now that you know the simple ins and outs of personal loans, consider taking one out to pay for your next home repair project or for your other expenses!