What Are The Different Kinds Of Personal Loans That I Can Get?

5 mn read

If you are in need of some extra cash or are just looking for a way to make some extra income, then personal loans can be a great resource! Personal loans come in many different shapes and sizes. There are short-term loans where you pay back your loan amount in one lump sum in two years or less, there are long-term loans where you pay back your loan over 3 years or more. There are also student loans where a student borrows money from the school to pay for tuition and other expenses like living expenses. Loans differ based on various factors like interest rate, length of the repayment period, eligibility requirements for both borrower and creditor. Let us have a look at the different kinds of personal loans so that you can choose the loan that is going to work for you and your personal finance plan.

 

Different types of personal loans-

 

  1. Short-term loans


Short-term loans are the type of loan that usually is paid back within 2-3 years. These loans are best suited for people who need some money to cover an emergency expense such as a car repair, home expenses, or even a medical bill. You can also obtain these types of loans if you are looking to supplement your income for a new year or if you want to purchase something that will not be used for long, such as a TV set that you will soon return. These types of loans are made available through banks and other financial institutions. However, there is no guarantor behind the loan unlike with medium and long-term loans.

 

  1. Medium-term loans

     

Medium-term loans are a bit longer than short term loans. They are usually between 2 and 10 years. This loan type is best suited for people who have a steady job that pays a consistent income. The interest rates charged on these loans can go as high as 16%. The reason why these are so expensive is because they require more work on the part of the lender. Of course, the loan amount may be lower at this time but over time, you will have to pay more because you will have accumulated more debt. Because of this, many people get discouraged and stop repaying their loans. The best thing to do is to make sure that you finish your loan before the due date. Because of this, people are advised to pay off their loans before they begin repaying them. This is especially true when you have a steady job, so that you will not be stretched thin for payments.

 

  1. Long-term loans

     

Long-term loans are best suited for people who have a steady job and consistent income throughout the year. These loans usually last for 3 years or more but maybe longer depending on the particular lender as well as the individual borrower’s needs at that point in time. The loan amount may be lower initially but the interest rate will be much higher and payable throughout the span of the loan. The interest charges can go as high as 18% or more. This is only to be expected because of the fact that a lender will have to take on more risk in order to have their money back and most people stop making payments before they are due.

 

  1. Student Loans


Finally, there is student loan debt which applies mainly to students who wish to pursue an education or a particular trade or career field. There are many ways that a student can obtain a student loan depending on what diploma program they are enrolled in at any given time. Some of the requirements for student loan approval depend on the type of student loan that is being considered. Some loans are reserved for students who have a 4-year degree. Other loans are reserved for students enrolled in a 2 or 4-year program at an institution that is accredited by the Department of Education. There are some programs that require you to have a high GPA in order to gain approval from the institution, but it is best to check with your school counselors and other educational staff before you apply.


There are many different types of loans out there. As you can see, the type of loan that you get will depend on your personal financial situation and what it is that you need at any given time. Always make sure that you shop around for the best loan for your needs. Also, look for a lender who will allow you to pay off your loan within a year or two if possible. This way, you will have the ability to gain approval from a number of creditors and choose the best option for yourself.


These are the different kinds of personal loans that you can get in times of emergency. Now let us have a look at the advantages of these personal loans.

 

Advantages of personal loans

 

  1. FAST APPROVAL SPAN OF TIME

     

If you have a personal loan, you will receive an approval decision in less than 48 hours. With a cash advance, it usually doesn’t take more than five minutes to get your cash. The banks give priority to consumers with bad credit and those who need emergency money while at work or on the road. You can also apply for personal loans online via mobile devices and computers. There are no waiting lines for borrowers with bad credit either! If approved, you can receive your funds within 24 hours and then spend them as quickly as possible.

 

  1. DEBT HELP

     

If there are huge financial responsibilities in your life, such as a home mortgage, car payments, and other types of debt, this is the best financial option. Personal loans can help you to get rid of expensive credit card interest rates. Even if you have bad credit, you can still receive the loans that you need. If you already have a lot of debt in your life, then it is better to consider personal loans. This way, the debt will be settled and you will not have to worry about how to make payments on time.

Personal loans can be a solution for students who are looking for quick money while studying at a local college or at an online institution. Since they are not working full-time, they usually have limited income. Many students need money to pay for groceries, books, and transportation. If you are in college or if you want to help a friend or family member who is in college, then personal loans can be a great solution. Personal loans can be used to pay for tuition fees, textbooks, and even part-time jobs.

 

You can also get money today if you want to start your own business and become self-employed. There are thousands of people who start their own business each year without any formal education background or training. However, starting a business is expensive; it takes a lot of money and time before you see some fruit on your investment tree. A personal loan can help you start your own business and get financial help while waiting for your business to reach profitability.

 

  1. SAVING MONEY ON PAYMENT

If you are in debt, then you are going to incur interest every month. This is not only expensive, but it proves to be more work than it is worth as well. Since personal loans don’t accrue interest, they take away the stress of making a monthly payment while also reducing the amount of money that you have to pay back over time. Getting a personal loan will also help you stop paying on high-interest credit card bills.

 

There are many different types of loans available these days, including short-term and long-term loans. Short-term loans can be as long as 90 days, while long-term loans can be for over two years. This means that you can take out a loan that is needed for a short period of time or one that will give you more time to pay off the debt. You need to make an initial payment when you apply for a personal loan, and most of them come with low monthly payments in the first year. If you think that your current credit situation is not good enough, then it’s best to use online lenders or visit a financial institution without any other options.

 

Thus, these are the benefits that you will get from personal loans. If you are certain to meet your financial needs, no matter what, you can think of getting a personal loans from Loan Center Canada and meet your financial issues with ease. 

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