A personal loan is a loan that you take out with a bank or a short-term lender that is not secured against an asset. It is often referred to as an ‘unsecured loan’ which means it does not put your property such as your home or car at risk.
With a personal loan, you may be able to borrow more than you could with a credit card, and they have the benefit of fixed interest rates. The amount you’d be repaying each month should also stay the same, which makes the payments easier to budget.
Borrowing with some more conventional lenders, means you typically can’t borrow for less than a year, and they may charge you for paying back early. If you’re borrowing over a longer period than you need, you’ll end up paying more in interest.
Unsecured loans, usually have more flexibility when it comes to the length of time you want to borrow for. My Financial Broker works with lenders that will allow you to choose how long you need the loan for, so you won’t be paying interest for a month more than necessary. There is also no charge for making early payments.
We are a broker, not a lender, so we’ll help you find the best lender depending on how much and how long you are looking to borrow for. We don’t charge a fee for our services: it’s completely free to use.