Lists of the Personal Loan Advantages & Disadvantages
PERSONAL LOAN ADVANTAGES & DISADVANTAGES – Here are the lists of the advantages and disadvantages in having a personal loan with a bank.
One of the types of loans that is usually applied for by many people is the personal loan. The said type of loan is often offered by lending companies and banks in the Philippines.
The thing that makes personal loan apart from the other types of loans is the wide range of purposes it covers. You can use it to purchase a high-priced gadget, to make a dream travel vacation come true, to pay for the house bills, etc.
You can do anything you want with the money and then pay for it installment to a lending company or bank.
But, before applying for this type of loan, you might consider the personal loan advantages and disadvantages. It can help you weigh if this loan is really what you need or not.
Here are the lists of personal loan advantages and disadvantages based on an article on Moneymax:
ADVANTAGES:
- Repayment Options. Borrowers have the chance to choose for the length of the repayment for the loan.
- Lower Monthly Interest Compared To Credit Cards. Based on the article, the personal loan’s monthly interest rates is usually on a range of 1.20% to 1.94% while credit cards usually go above 2% interest rate.
- Fixed Monthly Interest. You can manage your finances well knowing the fixed amount you have to pay for monthly.
DISADVANTAGES:
- Higher Monthly Interest Rate Compared to Secured Loans. Based on the article, personal loans with no collateral may have higher interest rate compared to those loans with collateral like the car loan.
- Penalties. There are penalties for late payments.
Hopefully, this has helped you ponder on applying for a personal loan. Thank you for visiting our website. You may keep coming back for more informative guides.