Learn More About Personal Loans
Frequently Asked Questions
It is understandable that if you have never taken out a personal loan before, you may have some questions regarding how they work. To assist you in learning more about personal loans, their uses, and the application process, we have provided answers to some commonly asked questions below.
A personal loan is a type of loan provided to individuals for personal use.
Personal loans involve borrowing a specific amount of money and repaying it over a predetermined period.
Personal loans can be used for various purposes, including debt consolidation, home improvements, or major purchases.
The loan amount depends on factors such as your creditworthiness, income, and the lender's policies.
Personal loan interest rates vary based on factors like credit history, loan term, and the lender's policies.
Repayment periods for personal loans typically range from one to seven years, depending on the loan amount and lender.
Personal loan applications can usually be made online or at a bank branch, requiring personal and financial information.
Eligibility criteria vary by lender but commonly include factors like credit score, income, and employment stability.
It may be more challenging to get a personal loan with bad credit, but some lenders specialise in serving individuals with lower credit scores.
Defaulting on a personal loan can have serious consequences, including damage to your credit score and potential legal actions by the lender.