An individual usually applies for a loan to pay for a vacation, or to pay for house remodeling. Whatever the reason, personal loans don’t come cheap, and they may have high interest rates. If you’re interested in applying for a personal loan, it’s best to look for several options.
Here is a quick guide on where you can go to for a personal loan.
1. Banks – Traditionally, individuals apply for a loan through banks. You will need to fill out and submit a loan acquisition form along with other requirements. Interest rates in banks are conservatively low, but the process for applying could be sometimes long and tedious.
2. Credit Union – these are financial coops that provide financial services to its members. You have to be a member to apply for the loan.
3. Peer-to-Peer Lending – also known as “Social Lending,” P2P lending allows people to borrow or lend money without a financial institution as middleman.
4. Microloan – A loan containing a small amount, lent with low interests, to both individuals and new businesses.
5. Co-signer loan – a person who agrees to pay someone else’s debt if the person cannot pay for the loan.
6. Licensed Money Lenders – an individual or a group of people who lend small personal loans with high interest rates. They usually come out as a last resort for borrowers with bad credit history.
These organizations and individuals can help you attain your personal loan, but choose wisely. Sometimes, interest rates can be too high in one group, or the number of years for you to pay might be too short. When you’re ready to get a personal loan, you’re making significant life improvements and you’ll also continue to save up for something better.