A loan is a person’s money that was borrowed from another individual or any financial institution. Commonly administered by banks and financial companies, the system deals on a process where a borrower must repay the money together with the additional interest rate that varies according to the principal amount. Some institution agrees to have collaterals acting as a back-up for payment in cases where the client happens to default the regulations of the transaction.
Furthermore, loans are categorized accordingly to their purposes and motives; to know more about them, visit Easy Credit SG. And as such, a Personal Loan is one of the most common services transacted by people because of its availability; any individual with a proven stable financial situation can avail the said loan. This is subdivided into other categories which include secured, unsecured, subsidized, concessional, and demand loans. Furthermore, these said loan types differ accordingly to the plans and services offered by financial institutions and know more about them, compiled below are some of the banks known to offer great personal loan services.
SoFi
Social Finance, Inc. is a personal finance company that provides services including personal loans, mortgages, and student loans refinancing online. This has high standards for credit and networking events which allows people to attend for financial and career advice. To transact services of the company, an individual must have an annual income of $45,000 and a credit score of at least 680. With their modern and digital system, SoFi offers flexible options for payment and won’t charge additional fees for late, overdrafts, and missed payments.
Upstart
Another online lending company, Upstarts provides personal loans with the use of unusual variables like employment and education to predict whether the client is creditworthy. This is great for applicants who do not have any history of credit but have a great potential for earning. Also, the loans from this company can be used for a lot of purposes including debt consolidation, medical expenses, home improvements, and college tuition. For transactions, a borrower must have a minimum of $12,000 for the annual income and have a credit score of less than 620.
LendingClub
LendingClub is a financial institution that helps people borrow money from another person or organization instead of transacting through the usual finance companies and banks. The interest rates given are also dependent on the grade coming from the borrower’s credit scores and income. This company offers an option to co-sign to the borrowers who have more than 600 credit scores and they also have plans for cases where the borrowers are having difficulty in keeping up to their monthly payments.
Moreover, a new system of the loan was introduced by the LendingClub last 2019, where clients can transfer balances to consolidate their debts by sending payments to 12 creditors to pay off the balances.
LightStream
A division of SunTrust Bank, LightStream offers loans that can be used for buying vehicles, paying bills, and other personal-related expenses. The interest rates provided by the company also depend on the purpose of why the clients have applied for the loan. For the transaction, the applicants are required to have credit scores that are more than 660 and must apply for a loan amount greater than $100,000.
LightStream also allows clients to apply through their website while guaranteeing the satisfaction of their applicants by offering them $100 back if they happened to be unsatisfied with the loans they received within 30 days.
Avant
Avant is a company that provides loans to borrowers with less-than-great scores of credit. This offers unsecured personal loans because they are a competitive lender that deals only with low credit. Furthermore, the company’s standard APR is no more than 9.95%, but this can still vary depending on the borrower’s credit scores. And as an example, if a client happens to have bad credit, then he or she will more likely to have 35.00% of APR. This is great for people who annually receive at least $20,000 of gross income, a minimum of 580 credit score, and in need of flexible payments, repayment for their credits, improvements for their home, consolidate debts, and coverage for emergency expenses.
Conclusion
The system of loans has helped hundreds of people who are having financial problems. Because of this borrowed money, individuals and organizations can pay medical expenses, buy their necessities, and even build their small businesses. And specifically, a Personal Loan has help people cover their bills due to unforeseen circumstances and fees that have been overdue. Although the application of loans requires an additional percentage of interest rate during repayment, this still has paved the way to the survival of people from their financial crisis; and to have more ideas regarding these services, visit Easy Credit SG.