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A personal loan is a type of loan provided by financial institutions that allows individuals to borrow a fixed amount of money for personal use. It is typically repaid in regular instalments over a predetermined period.
How do I qualify for a personal loan?
Qualification requirements vary, but common factors include a good credit score, stable income, and a low debt-to-income ratio. Lenders may also consider your employment history and collateral, if applicable.
What can I use a personal loan for?
Personal loans are versatile and can be used for various purposes, such as consolidating debt, funding home improvements, covering medical expenses, or financing a wedding or vacation.
How much can I borrow with a loan?
The loan amount depends on factors like your creditworthiness, income. Loan amounts typically range from a few thousand dollars up to six figures, but it varies.
What is the interest rate on a loan?
Interest rates vary based on factors such as credit score, loan amount, and loan term. Generally, personal loan interest rates range from around 5% to 36%. The rate you receive will depend on your financial profile.
How long does it take to get approved for a loan?
Approval times vary among lenders. Some online lenders provide instant decisions, while others may take a few business days. Once approved, funds are typically disbursed within a few business days.
Can I get a personal loan with bad credit?
It may be more challenging to get a personal loan with bad credit, but some lenders specialise in offering loans to individuals with lower credit scores. Interest rates and terms may be less favourable.
What is the loan repayment term?
Loan terms vary, but common repayment periods for personal loans range from one to seven years. Shorter terms may result in higher monthly payments but lower overall interest costs.
Are personal loans secured or unsecured?
Alternatives to our loans include credit cards, home equity loans, and borrowing from friends or family.
What are the most common use cases for loans?
Personal loans can be either secured or unsecured. Secured loans require collateral, such as a vehicle or savings account, while unsecured loans do not require collateral but may have higher interest rates.
Can I pay off my loan early?
Yes, most personal loans allow early repayment without prepayment penalties. Paying off your loan early can save you interest costs over the loan term, but check with your lender for specific terms.