A lot of things may arise in your financial life, and getting loans seems to be the next option. You may be confused over what sort of loan offer is available for you. Depending on your income cycle, there are lots of offers available. Below are 6 different loan offers that you can apply for if you meet any of the requirements.
Personal loans
Personal loans are offered by banks to their customers for them to buy anything they want. Customers can use the money and buy household utensils, gadgets, cars, home facilities, etc.
Customers are instructed to provide proof of income or proof of ownership of certain assets. This is to ensure they will be able to pay up the loan requirements. Whether the application is accepted or declined is often communicated to the customers within a couple of days.
It’s important to note that the nature of the interest rate on the personal loan is on the high side, and the duration for payment isn’t long. You must ensure you have the means to repay those debts before you apply.
Personal loans, therefore, should be taken if you want a small amount of money, and you intend to pay up quickly.
Read also: 9 loan apps you can borrow money instantly
Credit Card loans
With credit cards, all the purchases you make will be paid for at the end of the billing cycle. Credit cards make purchases convenient, and it is gaining popularity among folks.
You can get a credit card by filling the application form online, this form is provided by the card issuer.
Credit card loans require that you pay up on time and they reward you handsomely for doing so too. However, the interest rate is high, failure to pay on time will make managing your finances difficult, as a result of the increase in outstanding balance.
Home Loans
Applying for a home loan when you intend to buy a house is important; so that it can help you to an extent. The beautiful thing about taking home loans is that the loan tenure is long, and the interest rate is less.
Your credit score will be checked before your loan request will be approved; and if you have a good score, you will enjoy a low interest rate with your home loan. Although home loans are taken to purchase houses, they can also be done for home renovations, extension, purchasing lands, etc.
Car Loans
Car loans are secured loans, so you might get one without stress, and it is because the lender will take the car and recover the outstanding debt if you fail to repay your installments. Getting car loans makes it possible for you to live your dreams of owning a car by having the means to buy one. A good credit score is required to qualify for car loans as well.
Small business loan
Most times, Small Businesses need extra funds to meet several business requirements. This is where the small business loan comes to the rescue.
Small business loans will help the business grow its stance. This could come in the areas of purchasing equipment, paying salaries, footing marketing, and administrative expenses; paying debts, opening a new branch, or franchise, etc.
The eligibility for small business loans is different but the overall requirements may include one or all of the following;
- Age of the business owner
- The number of years the business has been in operation
- Income tax returns
- Statement of the previous year’s turnover, etc.
- Read also: Bank loans; Eligibility requirements for small businesses
Payday Loan
These are also called salary loans, and they are unsecured short-term loans. The customer is required to have a steady source of income and they have a high-interest rest rate. Requirements include;
- Applicant’s credit profile
- Applicant’s age
- Applicant’s Income(documents required would be salary statements and other proof of income)
Conclusion
You should resist the idea of getting loans if you do not have the means to repay, this will ensure you do not ruin your reputation. If you plan repayment goals extensively, you might be able to clear up all of your bills. Therefore, look into your pocket, and money-making abilities, and then leap.
