Loans are of different types. Maximum are taken as personal loans from different public and private banks. According to this recent report, the ratio of household debt and income in Canada is 165.4%. This means for every $1 you earn, you are $1.65 in debt. This is really a striking figure. Apart from personal loans, we’ll also be discussing cash loans online in this blog.
Cash Loans Online
Online cash loans are provided by some non-banking private lenders. These loans are for a shorted span of time. Suppose you have an emergency and are in need of $700 in a quick span of time, you go for online cash loans.
Some of the characteristics of cash loans online which you should be aware of:
- Cash loans online are the fastest source of loans at present for smaller amounts. It cuts through 60% of the total time consumed for a personal loan.
- Cash loans are secure and risk free for a borrower.
- Online cash loans are carried out completely online. No transaction whatsoever is hidden in nature.
- Cash gets deposited in your bank account instantly when approved of loan.
There are primarily 2 types of cash online loans:
Unsecured Cash Loans Online
If you have a good credit score, this can be a great deal for you. You don’t have to secure your loan with your home or any other personal assets. It just needs a credit score and your employment details. However, the interest rates are little bit more than the other types because the risk involved for a lender is more here.
Secured Cash Loans Online
These loans are secured with your home or any personal asset which is worth more than the loan you are taking. If you fail to pay the loan, the property might be seized.
Now talking about online cash loan’s counterpart,
These are the loans taken from a private or public bank. They are the most secure kind of loans which are insured and documented quite nicely. Personal loans should be taken from banks if you need a good amount of money and you can afford to pay that back during a long span of time with a hefty interest rate. Some of the characteristics of personal financial loans are:
- Personal loans are usually taken for a long span of time. i.e. from 2-5 years or even more.
- The interest rates offered to you can be flexible or, fixed as per the agreement.
- In order to become an eligible borrower, one needs to take care of his / her credit scores, should not declare bankruptcy during the period of loan,
- You should be earning a good amount of salary in order to get a personal loan.
- Repayments are easy as well as complex. This one depends on the infrastructure of bank’s credit system.
“Cash Loans Online Or Personal Loans From Banks?” – The Conclusion
Go for cash loans online when:
- It is extremely urgent to get the money. It will take 24 hours to get the money through cash loans online.
- The loan tenure is 1 month to 1 year
- Requirement is of smaller amount. Up to $1,500.
- Your credit history is not good.
You can go for personal loans when:
- The matter is not so urgent and it can wait till the bank agrees to give you a loan. It might take 8-10 days. Even more.
- The loan tenure is 1-5 years
- Requirement is of bigger amount.
- You have a good credit past and have always repaid your loans on time.
- You want lesser interest rates to be charged.