Low Interest Personal Loans
September 17, 2009 by admin
Filed under Personal Loans
The easiest kind of loan to obtain, by far, is a personal loan. How come? This has to do with the fact the companies making these loans are charging interest rates that are astronomical. When you can get away with charging ridiculous interest rates, it’s not so hard to lend the money. This is why you need to seek out low interest personal loans.
If I were willing to pay you 40% interest on a $5000 loan, wouldn’t you give me the loan? It’s pure madness that some of the available personal loans carry interest rates that are that steep. Something that I have often observed is that people will commonly ask if personal loans with low interest even exist.
In all honesty, unless you have something with which to secure the loan, there are few options. A close friend who was interested in having a cosmetic procedure done scheduled a meeting with her bank. She had considered applying for a personal loan to cover the expenses, but she eventually realized that borrowing on her car was a lot better deal. Eleven percent versus 7% was the difference between the cost of the personal and what she actually paid, respectively.
While a large percentage of these kinds of loans tend to charge very high interest rates, there are some more sensible options available. Depending on the financial market, the interest on unsecured personal loans from a bank will range from 12% to 19%. Mortgage loans generally carry the lowest interest costs of any type of loan, and signature loans from banks tend to be five to six percent higher.
You are probably going to pay around 15% on low interest personal loans. It’s not so impressive when compared to mortgage rates or rates on auto loans, but when you look at the cost of payday loans, it looks pretty darn good. Companies that make payday loans should be considered loan sharks, in my opinion, as they characteristically charge an APR in excess of 1000%.
Going to a bank with something to secure a loan is your best bet. Do that, if the option is available. If it’s not, consider getting a personal loan with low interest. I strongly suggest that you avoid payday loans. With their absurdly high interest rates, these loans can jeopardize your financial stability and security.
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