Places Where You Can Avail A Personal Loan

  • Posted on: 8 June 2017
  • By: oranje

People prefer to avail personal loans as they are offered without security. Various institutions offer these unsecured loans. The rate of interest may differ based on the lender. The term of the loan also varies based on the institution you choose. You need to look for the best service provider who can offer you with the best offers. You can apply for citizen bank loans for your needs. You can read through the various articles on availing a personal loan published in the website
The article gives an overview of the three types of lenders who offers you a personal loan.

Banks are the most preferred lender for many individuals. They offer numerous personal loans to different people around the world. A recent study reveals that 40% of the personal loans were issued from banks. It is due to the fact people trust banks more than other financial unions. It is seen that banks ask for a high credit score to avail a loan. Nearly 50% of the personal loans offered through banks are given to individuals who have a credit score of more 660. Few banks announce about their credit score requirement while a majority of the banks do not disclose the credit score requirement. They offer loans based on the credit score as they do not want to take any risk. Banks also offer a huge amount as a loan.

Credit Loans
Credit unions are non-profit organization offering loans for the benefit of the people. Credit unions offer personal loans for the members of the credit union. They offer lesser personal loans as compared to the banks who offer more number of personal loans. About 30% of the personal loans are originated from the credit unions. They help people with a personal loan when they possess a damaged credit. Credit unions also offer personal loans based on credit score. More than fifty percent of their personal loans were provided to people with a credit score less than 660.Nearly 25 % of their customers who have availed personal loans have a credit score of less than 600. Their lending decisions are based on the mission of the credit union. They offer loans to people who cannot avail loan elsewhere.

Finance Companies
These are firms which offer personal loans who have a very bad credit. Nearly three-fourth of their personal loans was issued to people with a credit score of less than 600. These lenders are marketplace leaders who have established their business online and raise money for it. Certain finance companies have branches to offer a number of personal loans. These companies do not consider banks as their competitors as they deal with different customers. Finance companies offer personal for people with damaged credit. About 50% of the loans originated from these lenders are provided to subprime borrowers. These companies do not provide huge loan amount as the banks do. They are also working to improve their reputation by increasing their credit score requirements.

The above are the places where you can get a personal loan. You need to pick the best lender based on your needs and the type of loan they offer.