When to choose Personal Loan over Secured/Collateral Loan?

 

Everyone needs a loan at some point in time. A personal loan is the best one that fits all your needs and suits you in the best way. It is tailored to meet your personal needs without even a single explanation. A personal loan is easy to apply and you get quick access to fund without any obligations or lagging periods. However, a secured loan is always the best one as it comes with a low rate of interest and you get a large amount of fund approved because there is no risk associated with it. Going over a personal loan and ignoring a secured or collateral loan can come into being only when you are facing certain conditions and situations. Look for the reasons that can make you choose an instant personal loan over a collateral secured loan.

 

• You don’t have a property to let go of: Not everyone has the extra property that they are not using. So if you are one of them, it is certain for you to choose the personal loan over the collateral loan. If you are not having any property to let go of, you can surely go for a personal loan as it demands any kind of security from you. It will be an unsecured loan and you need to just pay your EMI on time.
• You need a small sum of money: If your need is a small one, you should not let your property go. Borrowing a small amount will not account for a collateral loan, as that is not required. You can easily go for a personal loan that is instant and quick. There will be no need to give away your property if your fund requirement is very little.
• You have a good credit score: If you have a good credit score you will get a personal loan easily. You don't need to secure a loan with property or collateral. So if your credit record is already an impressive one, you can easily go for a loan without collateral.
• You can pay off: If the interest rate and EMI payment do not bother you, you can go for a personal loan. Collateral is added to make it secured. So if you are sure about paying it back easily, you can surely go for a personal loan.

Must Read: Personal Loan vs. Credit Card Loan?

Wrapping up

Gather all the personal loan documents and get a loan quickly. It will help you deal with all your expenses without any hurdle.