Inconvenient circumstances and emergencies happen all the time. It is a simply a part of life, which we cannot avoid. That is why the team at A1 LoanHub is ready to offer a hand, through our expertise and knowledge and help you choose a personal loan that can support you in urgent times.
ADVANTAGES OF PERSONAL LOAN
- It is an unsecured loan, therefore it is not secured by tangible collateral like mortgages and car loans.
- Better than a credit card as the interest is lower and often negotiable
- It also offers fixed interest rate repayments throughout the term of the loan
- It offers easy repayment options
Lenders will typically not ask for the purpose of the personal loan you're applying for. Personal loans can be used to buy computers and other electronic equipment. Buy any household good or furniture, take your family on exciting vacations, to provide assistance in home loan repayments and for debt consolidation, just to name a few.
THE DIFFERENT TYPES OF PERSONAL LOAN
The variable personal loan allows for greater flexibility. However, since interest is calculated on a continual basis against market rates, it provides less certainty around future repayment costs. Various lenders will offer different options for repayment, while some lenders allow reductions to interest only payments for a period of the loan. Further payments may be made without penalty, and some lenders will permit a redraw facility on their variable loans. In turn, this will enable you to access funds without having to create a new credit facility.
Loans where payments are set against a fixed interest rate and remain the same for the term of the loan. This can provide certainty around repayment amounts. The interest rates for a fixed business loan, however, are often higher than market rates. Some lenders permit additional repayments to be made.
This permits you to withdraw money from account which your bank has agreed upon. Interest payments will only be required for the amount borrowed and not the maximum amount. If you find yourself needing urgent money or are facing an emergency then this the option for you.
This allows you to withdraw money from account, which your bank has agreed upon. Interest payments will only be required for the amount borrowed, and no the maximum amount. If you find yourself in an urgent need of money, or in an emergency, then this is the loan for you.
Debt consolidation can assist by lowering your interest rate and saving money. It is essentially the act of combining all other loans into a single loan, which allows you to make the payments quicker and free from the trouble of managing multiple repayments every month.
You will not be required to offer any assets as collateral for this type of loan to the lender/bank. The lender may, however, require you to show evidence of steady income to ensure that they are not taking a risk with someone who could default on the loan.
A secured loan may require some assets as collateral which the bank or financial institution may claim if the repayments are failed to be made.
For students who need financial assistance on their studies, whether for purchasing electronics, books, stationaries, etc.
HERE IS A LIST OF CERTAIN REQUIREMENTS YOU CAN EXPECT WHEN DEALING WITH PERSONAL LOAN AND APPLICATIONS
You will be required to submit information regarding your debts, assets and liabilities for which you need to keep the following documentation ready:
- Income statements from any of your income-producing assets
- Credit card and loan statements from your current loan accounts
- A current rent or mortgage statement
- An estimation of your current expenses
You will be required to provide the details of your employer in order for the Lender to verify your employment status. This may include the employer’s name, address, contact information and also the duration you worked with them. We shall contact your employer to confirm the employment-related information you have provided if required.
To verify your income , you will also have to provide lenders with the following documents while filling out the application form.
- Bank statements
- Annual salary after tax deductions
- Latest three month’s payslips
- If you are self-employed, then the tax returns from the last two years must be provided