A personal loan is a loan that you take out with a bank or other short-term lender that is not secured against an asset. The asset is generally your property: secured loans are also called ‘secured homeowner loans’.
A personal loan is often referred to as an ‘unsecured loan’. 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.
With an unsecured loan, you usually have more flexibility when it comes to the length of time you want to borrow for. With some more conventional lenders, 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.
My Financial Loan 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 will 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.