A personal loan is usually understood as a loan that is issued mainly to individuals for the purchase of any consumer goods or services. Even a mortgage or car loan can be considered to be a type of such loans, however, it is customary to consider them as separate types of lending. The main features of personal loans are their short duration, which rarely exceeds 1.5-2 years, as well as an insignificant amount compared to the already mentioned mortgage and car loan.
Quite often, a consumer loan is issued in the form of payment by installments, when the interest on the loan is not actually calculated, being included in the cost of the goods. At the same time, the loan, in fact, is issued directly by the outlet, and not by the bank, not being a full-fledged loan, since there are no formal signs in the form of interest for the use of borrowed funds and the signing of a loan agreement.
Types of loans
Currently, there are several types of personal loans from Cash Advance Greeneville TN, which can be classified according to their various parameters:
- Non-targeted. Such loans are issued in cash or on a credit card. An important feature of such loans is a higher, in comparison with the target, interest rate, as well as a smaller loan size. Despite this, according to many financial analysts and specialists of the banking services market, this particular type of consumer loans is the most common;
- Targeted. Issued by the bank for the purchase of a specific product or service. Often, registration takes place directly in the store, where the borrower has already picked up the purchase he needs. Often this loan type is used to pay for various services, for example, medical treatment or a tourist trip;
- Express loan. A relatively new type of lending, which is provided in most cases online, acting, in fact, an improved and more beneficial version of payday loans for the client. The main features of such loans are high interest rates and small loan sizes;
- Credit bank card. The reasons for this are the simplicity, safety and convenience of the procedure for crediting funds in combination with the constantly increasing number of cards in the hands of individuals.
How to apply for a personal loan?
Until recently, issuing a loan for consumer needs required a mandatory visit to a bank or retail outlet. At the same time, the procedure for filling out and submitting the necessary documents was quite quick and simple, which is not surprising given the high level of competition in this market segment. The client simply would not work with a bank that makes excessive demands or slowly sings the papers necessary to receive funds.
Can I apply online?
However, in the last 3-4 years, an increasing number of applications for personal loans have been submitted over the Internet online. This is explained not only by the convenience of such a procedure for the client, but also by a rapid increase in the volume of online trade. As a result, the purchase of one or another product can almost completely take place online: starting from its choice, continuing by submitting an online application and obtaining a loan, and ending with payment and subsequent ordering of delivery of the goods.