Discover the Different Types of Personal Loans You Can Apply For

 

Personal loans come in a variety of options, each with its own features, benefits, and drawbacks. So, if you're considering applying for a personal loan, it's important to know the different types of personal loans available in the market. 

In this blog, we'll explore the various types of personal loans, their features and benefits, and the scenarios when they are best applied.

Secured Personal Loans

Secured personal loans are backed up by collateral, such as your house, car, or any other asset. This means that if you can't repay the loan, the lender can seize your asset to offset the debt. 

Although these loans require collateral, they also offer lower interest rates and higher borrowing limits. Secured loans are best for individuals with assets that can be used as collateral and those seeking lower interest rates.

Unsecured Personal Loans

Unlike secured loans, unsecured personal loans don't require any collateral as security. These types of loans are based on your creditworthiness and your ability to repay the loan and typically come with higher interest rates since the lender takes on more risk. Unsecured loans are best for individuals without assets to use as collateral.

Debt Consolidation Loans

If you have numerous debts with high interest rates, a debt consolidation loan may be a great option for you. Debt consolidation loans consolidate your debts into one loan, with lower interest rates and preferable payment terms, making it easier to repay your debts. 

Debt consolidation loans are best for individuals facing numerous debts or high interest rates.

Lines of Credit Loans

Lines of credit loans are a form of revolving credit, similar to credit cards. You can draw from your line of credit as often as necessary, as long as you don't exceed your credit limit. 

With a line of credit loan, you only pay interest on the amount you've used, giving you more control over your finances. Lines of credit are best for individuals in need of a continuous source of funds, such as small business owners.

Payday Loans

Payday loans or cash advance loans are short-term loans with very high interest rates, meant to be repaid on your next payday. These loans are typically for individuals without sufficient savings and cannot rely on traditional lending institutions. 

Payday loans should be taken as a last resort due to the high interest rates that make it difficult to repay.

Final Thoughts

In conclusion, taking out a personal loan is a serious decision, and it's important to choose the right kind of loan that suits your particular circumstances. 

Whether you need funds for home renovation, debt consolidation, or a new business venture, it's essential that you evaluate your needs and budget to determine the type of personal loans you can apply for and those you are best suited for. 

Always remember to borrow only what you need and can repay, and work with trusted lenders like those at Foti Financial Services.

Dutton Lending: What Personal Loans Can Do To Help

Getting a personal loan can help out when used correctly. By definition, it’s a debt product made available to a person needing money from a bank, credit union, online brand, lender, or even a personal friend. They can be secured or unsecured, giving a person a sizable amount of money that must be paid back over time.

Lenders make their money with upfront costs and/or interest rates. Picking out the correct type of personal loan makes a big difference because of money management after the fact. Looking for the right amount of loan money, interest rates, and other stipulations matters.

Dutton Lending is just one company that offers personal loan choices. They work with individuals so that they can pick out the right option for them. It doesn’t have to be an overwhelming decision at the end of the day.

Secured Personal Loans

To acquire a secured personal loan, a person has to put up an asset of some sort to act as collateral. People will put up something of pretty significant value to get the most money possible. Think about major purchases in the past, like a vehicle or property.

It works best as a way to counteract having a lower credit score. People needing quite a bit of money at once will also need to do this to avoid huge fees. However, a person needs to keep up with their loan repayments so that the collateral isn’t seized by the lender later on.

Unsecured Personal Loans

One of the most popular options in today’s world for personal loans is an unsecured solution. It’s swift and easy to get approved, given that a person has at least good credit. Online lenders like that in lending can give people money in a matter of hours.

Shopping around for the right interest rate with an unsecured personal loan is very important. Some of them are pretty high up there, as lenders are trying to protect themselves from taking on a lot of risks. The faster someone pays off their unsecured personal loan, the less they get hit by interest.

Debt Consolidation Loans

Accumulating debt and being unable to pay it off on time can lead to people looking for answers. When this is the case, a debt consolidation loan can help pay off debt faster by saving a little on interest.

Dutton Lending offers low-interest rates for debt consolidation loans, and they can shave months or even years off the repayment process. Another benefit is that borrowers can make the repayment process much easier by paying for one loan.

Some people have trouble keeping up with all the payments (ex. five credit cards with balances on them). Paying one bill a month due on the same day every month becomes much easier to manage.

Fixed and Variable-Rate Loans

A fixed-rate loan never changes over the repayment term. It’s great for people who want routine in their life, as a borrower makes the same monthly payment each time. The majority of personal loans will work this way.

Variable-rate loans are also out there. This is a bit of a gamble, as monthly payments could go up or down, depending on what the lender decides. If the monthly total is high, it can be challenging to budget for payments on variable-rate loans. Fortunately, variable-rate loans are becoming less common.

Joint Loans

Qualifying for a loan can be challenging with poor credit or no credit history. A way to still get money is to apply for a joint loan with a co-signer. As long as the person can find someone else with a strong credit score or history, they can assume responsibility. It’s a risk for them, but making payments on time helps to rebuild trust.

This type of loan is most commonly found within families. For example, parents might take out a joint loan for their kids as they are just starting their adult life. They might not have the credit history to do it on their own, so parents take the risk to help. This works out for both parties as long as everything's paid back on time.

What are the Positives and Negatives of a Personal Loan

The general positives and negatives of a personal loan can sway people one way or another when needing financial assistance. Keep in mind that personal loans offer outstanding flexibility, high-speed access to cash, and a way to avoid costly credit cards. 

Convenience plays a role in personal loans being so popular in today’s world. Dutton Lending is a great company to go to for a personal loan.

The negative aspects of personal loans are similar to credit cards in that a failure to pay is a bad decision. Not only will additional fees be tacked on, but interest rates will start to make the loan expensive. 

There are also negative credit issues since lenders will report history to credit bureaus. As long as a person keeps up with their payments and doesn’t sign up for crazy interest rates, personal loans have more positives than negatives.

How to Find the Best Personal Loan Option

Lending options are available in-person and online as long as a person looks around. There have never been more options available to shoppers. 

Unfortunately, that also means there are a lot of bad lending options out there that ultimately get people in more trouble because of the fees they try to charge.

Dutton Lending strives to be an alternative to that type of lending. Dutton Lending has always offered competitive rates and personal attention for those who need it. Getting guidance from a company like Dutton Lending before making a final decision on a personal loan can make all the difference in the world. They can ask a few questions and make a decision in a matter of minutes.

Different Types of Loans and How They Can Help You

Saving up for a big purchase is always a good idea, but in reality, it's simply not always possible. This is especially true when it comes to paying for huge expenses such as land, a home, your college education, and any other purchase with a price tag reaching the thousands or even millions.

Fortunately, when you can't save up money in advance, there's a wide variety of loan options out there to choose from.

Personal Loans

As one of the broadest loan categories, personal loans provide funding for a wide variety of uses ranging from weddings and vacations to home renovations and debt consolidation. 

Most personal loans can be easily applied for online and feature repayment terms ranging from 24 to 84 months.

Auto Loans

An auto loan is a type of secured loan available solely for the purchase of a new or used vehicle. With most auto loans, borrowers can expect to pay an interest rate as low as three percent for excellent credit or as high as 10 percent for borrowers in the sub-650 range. 

Auto loan terms can range anywhere from 36-84 months and are often at the discretion of the borrower. However, as with any type of loan, the longer the term, the greater the amount of interest paid.

Mortgage Loans

Similar to auto loans, mortgage loans are secure loans, only they are for much more money and typically require regular monthly payments for up to 30 years. 

There are several types of mortgage loans, and while credit unions and banks are the most common mortgage lenders, they sometimes sell their qualified mortgage loans to federally-sponsored entities like Fannie Mae and Freddie Mac. Government-backed loan programs are also available for certain homebuyers.

Land Loans

With limited inventory and sky-high home prices, more and more people are buying raw land these days. However, the land isn't exactly cheap either, which is where a raw land lender comes in, someone like Raw Land Lenders. 

Land loans allow adventurous borrowers to buy raw land in order for them to build their dream house, create a mini-farm, and virtually anything else they choose to do with what they buy. 

While land loans generally have higher interest rates than mortgage loans, they also feature shorter terms and require less of down payment, making it possible for almost anyone to achieve their dream of land ownership.

Student Loans

Student loans are unsecured loans meant to pay for college tuition, fees, books, and living expenses. Unlike personal loans, which can be used for anything, student loans can only be used for education-related expenses at accredited schools. 

There are both private and federal student loans, and both often come with low-interest rates and flexible repayment terms.

As you can see, there are several different loan options available to fund just about whatever you need. Deciding on the right type of loan really just depends on what you plan on using it for. 

For example, if you plan on buying a car then obviously an auto loan would be of the most benefit to you. Meanwhile, a raw land loan can help you build a home while a mortgage loan allows you to pay for a home that’s already built.

Dutton Lending Differentiates Bank Loans and Personal Loans

For many people, there are always times when they could use a bit more money to make ends meet. Maybe one needs cash for a home improvement project or money to help cover virtually any other unforeseen expense. If that’s the case, options are available that make financial sense.

A loan is one of the best ways to get money without being charged super high-interest fees. While the terms and conditions are always different depending on several factors, most can qualify for a much better loan than a high-interest credit card. It also beats huge late fees in certain situations.

What options are available? What works best for certain situations? By making intelligent decisions on loans, a person can correct their finances quickly.

Bank Loans

Banks tend to offer a variety of loans for individuals looking for money as quickly as possible. Secured loans usually come with a lower interest rate, but the downside is that a select asset works as collateral.

The most common example of a secured bank loan is a mortgage, as the bank can take over the home if the lender fails to make payments. Pay the loan back on time and in full, and there will be no issues. Slip up, and there could be major consequences that kill any advantage of a lower interest rate at first.

There are a lot of banks also offering unsecured loans, which act much like personal loans. They realize the popularity of these smaller loans, and they do their best to offer similar rates as smaller lenders. People will always feel a lot better about taking a loan out with a well-known bank, so they might be willing to pay slightly less favorable rates.

In the past, secured loans were much more common. Sometimes they’d even be the only option for people. With unsecured personal loans starting to rise in popularity, it’s helped make rates that much better across the board.

Personal Loans

A personal loan like what you get at Dutton Lending is an installment loan option that provides people who qualify with a fixed amount of money. They receive it in one lump sum, and it’s an unsecured personal loan. The good news is that there’s no collateral to secure these funds, but that does come with interest rates that are a little higher because of that.

Every personal loan setup is different, but most repayment terms are at least a year long. Some of them will be about ten years long if it’s a more significant sum of money. There are no restrictions for personal loans, but it’s essential to be upfront with the lenders to get the best option.

The application process is very similar to securing a credit card. It could be done online or in person, but every lender will run a hard credit check to finally complete the fast loan option. Most people can get by with decent credit, as anything above 650 will usually work for personal loan eligibility.

What Loan is Best?

Most people will say that the best loan is the one they can get approved for. The chances are, the better the person's credit score, the better their interest rate. A bank loan can be a very secure option, and businesses usually go this route. It’s awesome for some people who want to have all their finances running through one particular bank.

A personal loan from a company like Dutton Lending is a perfect option for many people, as long as they have no issue paying it off. For example, a common use for a personal loan is to pay off credit card debt. If the personal loan interest rate is much lower than the credit card rate, it’s a smart move without any fear of late fee penalties. If a person struggles to pay their bills on time, personal loan late fees add to debt issues.

The good thing about both types of loans is that a person can inquire about them and even become preliminarily approved without doing anything to their credit score. Soft inquiries are a smart way to gather information and see what is there. A credit check will occur only when filling out paperwork and getting to the final stages.

How Easy is it to Secure a Loan?

A personal loan is pretty easy to secure these days, especially with so much competition out there. Companies like Dutton Lending have simplified the process to the point that it takes just a few minutes to fill out the information. There are even options available that allow people to get pre-approved to speed up the loan process.

Bank loans tend to take longer to secure since they undergo more procedures. For some people to take care of business right away, they don’t have that extra bit of time to wait for something like that. They have to be ready to go and get a loan, and they need it right away. Waiting just a little bit longer can cause many other complications no one else wants to deal with.

All in all, loans are easier to secure so that a pressing purchase is possible. This makes personal loans especially good for emergencies.

How Dutton Lending Helps

Dutton Lending prides itself on being a lender for all types of needs. From personal to business loans, finding the perfect solution will allow people to control their finances better going forward. The team strives to be a go-to source for information and support to make wise decisions every step of the way.

How Loans Can Keep You From Falling Behind Financially

Many people are currently out of work but still need to pay their bills. This causes people to drastically fall behind financially. Even if you have money saved for a rainy day, an unexpected financial crisis can put you in debt.

Back in the day, you could borrow money from your loved ones to get by and they could live comfortably until you paid them back. However, it's likely that even their finances have become tighter, so they may not be as open to loaning large amounts of money.

Some people may feel skeptical about getting a loan depending on how much research they have done. However, taking out a loan from reputable businesses can be the best financial decision you can make. Here are a few ways loans can improve your financial standing.

Avoid High-Interest Rates.

When it comes to lending options, getting a personal loan is one of the most flexible options available to you. Some companies give you between six months to ten years to repay the loan back depending on their policies. 

When you commit to a long-term payment plan, you also have a fixed interest rate, which is less than having to pay multiple bills at once.

Once you’re in decent financial standing, you can even get in good standing by paying a bit more than your minimum monthly balance. As long as your lender doesn’t require a prepayment fee, you can get ahead while saving hundreds or even thousands in interest.

Consolidate Major Credit Card Debt.

Credit cards are a great thing when you can make the payments on time. Unfortunately, falling behind on bills typically means you’re unable to pay your credit card bills every month. On top of late fees, credit cards notoriously have high-interest rates.

Taking out a personal loan allows you to combine your credit card debts and pay them off in a shorter time period. Even if you still have a remaining balance, you’ll ultimately pay less money than if you don’t consolidate your credit card bills and utilize a loan to pay them off. Best of all, you can raise your credit score, which creates a large number of financial opportunities for you.

Like any lending option, personal loans can have ups and downs. However, they are a great way to help yourself when you're in a financial bind. 

Be sure to do plenty of research so that you can find a reputable personal loan company like Right Trac Financial. By taking the time to identify your options, you will be able to find a variety of different loans that can help you maintain financial stability.

4 Ways a Small Loan Can Actually Help You in a Tight Situation

Many people avoid taking out loans to avoid repayment and to protect their credit standing. However, sometimes circumstances unexpectedly occur that require immediate financial relief. When other means of financial help are unavailable, a small loan might be your best option for several reasons.

Prompt Solution to the Problem

Getting a small loan can settle your financial issues promptly. Personal loans can sometimes be approved over the phone, and the amount you are approved for can be deposited directly into your account. 

You don't have to open a credit card and wait for the account to be approved several days later. Nor will you need to negotiate the financial problem you are having with a creditor or another source. Just get your loan, pay the balance, and relax.

Protect Your Financial Reputation

Being late with a financial obligation is stressful for you and the creditor. In addition, if the amount you owe is not handled promptly, the late balance may negatively impact your standing with that financial entity. 

They may not extend credit to you in the future, and there might be a ripple effect with other creditors that are linked or associated within the same industry. Paying your balance owed in full will make you and your creditor happy and keep your record with the company in good standing.

Repay Over Time

When you take out a personal loan, you can make payments that fit your income level and monthly budget. Make your payments on time without feeling an immediate monetary crunch. 

If you are able, you can also pay off the loan early to save interest and not worry about further payments. A loan gives you the flexibility to pay as you are able without extra fees.

Build Your Credit Score

Paying your financial obligations on time is an important part of your financial well being and credit score. If you fall behind in your payments, your credit score will suffer. 

It may be difficult to get future credit, or if you are approved for a credit account, the interest rate, fees, and payment schedule may be less favorable than what you currently have. A positive credit rating is essential for financial health now and in the future.

Talk to the financial institution of your choice to see if you are eligible for a loan. Check out the interest rate, payment amount, and loan terms before signing an agreement. A loan could be the answer to your financial pressures.

Is It Good to Fund Your Investment with a Personal Loan?

With the rise of available loans and investment options in India, an increasing number of investors seem to opt for unsecured loans to invest in equity funds and Initial Public Offers to earn a profit and repay the loan. As the equity market stabilizes in the last fiscal quarters and the Sensex reaches an all-time high, people are capitalizing borrowed money to earn a substantial return against their investment.

There are certain things that an investor should look out for before they put borrowed money into investments. They should know about the best short term investments, along with the benchmark index to earn the maximum returns at the end of each year.

Is it right to fund your investment with a loan?

You can fund your investment options in India with a loan if you take care of a few things. For example, you should not put your money into an investment scheme that will mature after your credit is due. You should also consider whether the return on the investment is higher than the sum of credit. If the benchmark index (Nifty) shows returns of at least 13% annually, you will earn approximately 24% on your investment portfolio for the years ahead.




A personal loan is one of the best options if you want to invest the borrowed money. Personal loans come with various features and benefits that can assist you to earn the highest against your investment. Financial institutions offer flexible tenors on this type of unsecured loans, which puts less strain on your finances and eliminates any worries about losing an asset in case you fail to repay in time.

Things to look out for before investing

If you are looking for how to apply for a personal loan to invest the funds, you should check out a few precautions before you invest that money in the market. Let’s take a look.

• Have an alternate source of income – Financial experts suggest borrowers to have an alternative source of income to pay the EMIs if they plan to invest the funds from such loans into investment options in India. Systematic withdrawal from the market to pay the EMI can prove detrimental if you want to earn a high return.
• Carefully choosing the investment plans – Ideally, you should invest in the best investment plans for 3 years or 4 years. These often carry stock options that are fundamentally strong, and you also won’t have to pay for short-term capital gains.
• Check the loan rates – The interest rates on a personal loan play a critical factor to determine you get a substantial return. If you choose an advance with a high rate of interest, you will have to hand over a significant amount of money to the lender when the payment gets due. You will also pay larger EMIs during the repayment tenor.
• Opt for low interest rate personal loans - To earn the best returns without straining your finances during the loan tenor. You can use a personal loan EMI calculator to determine a preferred monthly installment rate for repayments.
• Know about additional charges and fees – Along with the interest rates, you should also learn whether a lender asks for any fees and charges. Ideally, you should check it while you look for your personal loan eligibility criteria.

Various financial institutions charge a minimum processing fee and interest rate on personal loans.

• Know about the investment option – Before you invest in a particular stock or mutual fund, know how it performed since it was introduced to the market. It will help you shortlist the best investment options in India and prevent you from losing money.
• Understand the risk level – Certain investment schemes come with more risk but higher returns. You should opt for a scheme that you are comfortable with. For example, if you prefer a safer investment with guaranteed returns, you can put the money in fixed or recurring deposits or government debt bonds.

Investments via funds from a personal loan should be a careful and deliberate task with proper planning and strategies. While it is easy to meet a personal loan eligibility, you should consider the pros and cons of the credit along with the investment option itself to ensure a guaranteed gain.

Understanding How to Use Collateral for a Secured Loan

It is important to be able to have access to loans when you need them. Sometimes you will need to provide a lender with collateral in order to receive the favorable loan terms that you are looking for – this is typical of secured loans. 

If you have yet to secure a loan with collateral, then you may not understand how the process works. There are specific things that will be accepted as collateral, and knowing what they are as well as the benefits are important.

Why is Collateral Necessary?

Collateral is necessary for loans when the lenders need assurances. Sometimes people with less than stellar credit will need access to loans. If the lender deems the loan to be risky, then having collateral in case something goes awry will limit their risks. 

This makes it easier for them to justify giving you the loan, and it can wind up giving you more favorable terms.

What Are the Benefits of Using Collateral for a Loan?

There are various benefits to using collateral to get a secured loan. The most apparent benefit is that it allows people with less than perfect credit to get the loans that they need. 

This can lower the interest rates of the loan and will also make the approval process go smoother. If you want to get a loan, and your credit score is less than 700, then it might be in your best interests to use collateral to make things as manageable as possible.

What Are the Negatives of Using Collateral for a Loan?

The negatives of using collateral for a secured loan are pretty easy to understand. You are using your assets to secure the loan, so if something goes wrong, you could potentially lose those assets. 



If your vehicle is being used as collateral to secure the loan, and you don't pay it back, then your car could get repossessed. Also, sometimes these loans are long-term, and you can get stuck paying interest for a long period of time if you don't plan ahead.

What is Accepted as Collateral?

The type of collateral that is accepted for a loan will depend on the type of loan that you are applying for. Generally speaking, there are three types of loans that you will be able to seek out – personal loans, business loans or commercial finance, and auto loans. Each of these three types has differences with the types of collateral that you can use to secure a loan.

Personal loans allow you to use real estate, home equity, vehicles, and even your paychecks as collateral for a loan. There are also cases where savings accounts, investment accounts, and valuables are accepted as collateral. The most common collateral that is used for these purposes is definitely real estate, vehicles, and home equity.

Business loans allow people to use similar things as collateral but will also add in a few options. You can use business assets such as inventory, machinery, or a blanket lien as collateral. Auto loans will allow you to use the car that you are purchasing as collateral, or other vehicles that you already own. No matter what type of loan you are applying for, the value of your assets will need to be determined before moving forward.

Choosing Loan Against Property To Tackle Your Financial Worries Perfectly

It is impossible always to stay ready for an emergency; someone might need immediate access to funds at a moment’s notice. Under such circumstances, loans become the best option to fight against cash crunch. 

While there are multiple types of loans available in the market, a loan against property, or LAP, is one of the cheapest & secured options available in India. 

Multiple lenders offer this type of loans in the Indian market; financial institutions like Bajaj Finserv even provides hassle-free Loan Against Property of up to Rs. 3.5 Crore for individuals with facilities like easy balance transfer and flexible tenor options.

Loan against land property offers a unique opportunity where you can keep your personal or commercial property as collateral and borrow money against it. An attractive feature of this type of loan is the amount of fund. Up to 40%-70% of your property’s market value will be available as a loan.

LAPs are a great solution for anyone who is looking for a quick boost in his/her financial condition. A person has to meet a few criteria to apply for these types of loans. Although they differ between different institutions, some requirements are common amongst all.

If you are availing a loan against property India, you must be an Indian citizen and own the property yourself. Also, as an applicant, you must be employed. 





Whether you are a self-employed or salaried individual, you must have a stable source of income. Also, a good CIBIL score is preferred to get a LAP.

Loan against a property offer multiple benefits other options. These are made to be easy to avail, with a relatively low-interest rate and long repayment tenor. Let’s take a look at some of the features of LAPs.

Easy to Avail

As you are keeping your property as collateral, the process becomes a lot quicker and streamlined. You need to submit the papers of your property along with documents like ID proof, address proof and proof of income, and your loan application will go through immediately.

In this respect, while most banks and NBFCs need to stand in queues over long waiting hours, companies like Bajaj Finserv offer hassle-free loan disbursal with minimum documentation. Also, they provide doorstep service for submitting your documents and have a quick processing time of only 72 hours.

The Flexibility of Use

Another benefit of availing a LAP is the flexibility to utilise the funds according to your requirements. Banks and NBFCs do not restrict the use of the money. You can use the funds for anything from financing a wedding to expanding your business.

It also opens the option to consolidate your existing loans. Low-interest rates and high tenor period are the perfect reason why a loan against property helps you consolidate your existing debts.

Continued Ownership

Unlike a home loan, where you do not receive the ownership of the property unless the loan is paid in full, loan against property does not take the ownership of the collateral from you. 

If under any circumstance, you are unable to repay the loan, you can sell your property and use that money to repay the balance amount to the bank. Such a feature gives you the freedom to have an option to clear the loan if an issue arises.

Low Interest Rates

Loan against property is also attractive for their low-interest rates. LAP Interest rates are always lower than personal loan. Interest rates of a personal loan are more than almost 1.49% to 10.25% from a loan against land property.

Whether you need money for your child’s education or growing your business, a loan against property gives you the power to tackle all your financial problems. Also, with financial institutions like Bajaj Finserv bringing pre-approved offers for your loans and EMI financing, you can simplify your financing process and save your precious time. 

With only a few clicks and some basic details, you will be able to Check Pre-Approved Offer for loan against property.




For Additional Read Visit: 4 Reasons Why A Loan Against Property Helps In Consolidating Existing Debts

All You Ever Wanted to Know About Tax Benefits On Personal Loans

Personal Loans are becoming convenient means of getting emergency funds for various purposes. They are easy to get, and you don't have to declare the purpose for which you are using the loan. Did you know that Personal Loans can also in certain situations, provide you Tax Benefits?

Personal Loans

Personal loans are unsecured loans. You don't have to provide a collateral for getting the funds. As they are unsecured, they come at high interest rates. However, because they do not require any security, there are fewer documents to verify, so these loans are processed quickly.

While you can get personal loans even with a low credit rating, the interest charged can be very high. If your credit score is good, you have a better chance of getting the loan quickly and at lower interest rates. 




With Personal Loans, you don’t need to declare the end use and show proofs as you have to do with a Home Loan or Car Loan. You can use the funds raised for any purpose. You can use it for an emergency expense, for medical or hospital bills, for educational funds, for buying new furniture, to buy home appliances, to raise quick funds for your business and so on.

As long as you stick to the repayment schedule, and don't get too many personal loans at once, you can probably repay the loan on time and be relieved of an expensive debt. However, unlike a Home Loan, you don't normally get tax benefits on a personal loan.

Or do you?

Tax Benefits on Personal Loans?

With a Home Loan, you get tax deductions on the principal repayment and on the interest paid on the loan. So, you generally get a Home Loan to buy a house or to carry out repairs and renovations. As they are secured loans (the property you buy is the collateral), the interest charges are much less compared to Personal Loans.

So, why would you get a Personal Loan to buy a house? Normally you wouldn't. But there might be exceptions. For instance, you generally get only around 80% of the total cost of the house as a Home Loan. You would have to pay the rest yourself as down payment.

You may not have access to enough funds for this down payment. But you need to make the payment quickly to get your Home Loan processed and to buy the property. You may be thinking of renovating or redecorating your house. A good option might be a Top-up loan on your Home Loan, but you currently may not have made enough repayments to have the necessary equity on your home for a top-up loan.

In these and other cases, you may resort to a personal loan if you are confident of keeping up with the repayments on your Home Loan and Personal Loan.

Tax Benefits on Personal Loan Used for Residential Property

If you use your personal loan funds towards acquisition of a house or to renew or remodel it, you can show proofs of the expenses to avail tax exemption on the interest paid on the loan. According to Section 24(b) of the Income Tax Act, use of borrowed capital towards purchase, renovation or repairs on your residential property entitles you to tax deductions on the interest of the repayment.

Section 24(b) does not specifically mention the type of loan. So, even if you take a Personal Loan to bridge the gap between the Home Loan and the actual cost of the house, or to repair the house, you can claim a tax exemption on the interest amount paid. Note that you cannot claim deductions on the principal, only the interest component.

If the loan has been taken for a house that you live in, you can claim a deduction of up to Rs. 1.5 Lakhs on the interest amount paid in that year. If the house is still under construction, then you will have to wait until the construction is completed. If you have let the house you borrowed the amount for on rent, there is no cap on the interest amount you can claim deduction on.

Remember, if you are carrying out repairs or renovations, save all the bills for materials and labor. You need to show these as proofs to get the tax benefits on personal loan.

Tax Benefits on Personal Loan Used for Your Business

Funds you use for business purposes can be deducted from your net profit as expenditure. So, any funds raised through a Personal Loan that you have used as business expense can also help you save on taxes. The expenditure brings down the taxable profit, so your tax liability becomes less.

While you don't generally associate Personal Loans with Tax Benefits, depending on how you have used the funds, you can claim deductions and save on taxes.

Co-signing a Loan: Is it a Good Idea?

Any time a friend or a family member goes through hard financial times we try out best to help solve this issue and get the person out of this hole. What shall we do if we want to give a helping hand? The most common thought is to give some cash to retrieve oneself out of a financial gap. But there is another way of solving out temporary cash issues such as co-signing a loan, for example.

Most people have no idea whether it is a good option or they are not really helping out this way. Nevertheless, though it does seem as a potentially reliable option it does not mean that there are no financial hazards in a case of co-signing on a loan. Learn about the ones in this article while considering this option.

• What is the reason for a bank to demand a co-signer from a person who is actually willing to take out a loan? Usually it means that the latter is a client with bad credit history or not credible enough to be given out a loan. That is why it is never wrong to check on the personal data of this client and go through the credit history with him/ her.
• What about your credit score? Is it sufficiently high to apply for a loan and present yourself as a co-signer? In most cases primary borrowers are rejected at being issued a loan and that is why they try to find a guarantor - a person who will take half-responsibility of paying the personal loans off.
• The hugest problem will be if your co-signer does not eventually pay for the part of a loan that he or she signed for. So basically you will be the one who will get charged by bank or any company that you applied to. Moreover, it will do much harm for your credit score as it will be reported. Additionally, lender has all the rights to charge your wages according to the laws of the state which citizen you are. 
• Be careful with your credit history as in a case of delay payment or not paying off a debt at all, your credit score will be impacted as well. Do not be surprised in such situation if your credit score agency will contact you in order to get to know the details of what is going on. 

Co-signing a loan means getting a part of financial responsibility, so think it thoroughly whether you are ready to become a guarantor for one person or another. Consider how credible the applicant is. Get mentally ready for any consequences that may occur in case of a primary borrower's inability to pay a debt off. It is better to consider this loan to be yours and do not miss any payments. That is why if it is not you who needs cash, would you go for all the hazards?

How to Safely Take No Interest Deals

You can afford many things now, such as tires, furniture, electronics and appliances. Purchase it now and never pay interest for 2 years straight. As it is the best deal, you will find it hard to miss the chance.

The Interesting Deal

We have all known about no interest deals and same as cash deals. Those things come in various sizes. You can obtain ninety days same as cash. Even better, how if you pay no interest for one year, two years or more? Such deals might be very alluring to most people. Particularly when you want certain items now. In the end, you will have much time for paying it off completely. Let’s hope so, since when you can’t it might cost you much time. And if you are not cautious you might find yourself paying additional fees that come out of nowhere.

Look before You Leap

Just like you should do with other financial product, it is good idea to spend your time to completely comprehend the credit terms in advance. It is essential to understand how it works. In order to avoid any unexpected occurrence and the difficulty of attempting to solve problems later.

Here are several questions to answer prior to deciding to take the deal: How long will you need to pay with no interest? Do you need to make payments in each month? How do you calculate them? Do you find any other fees related to the credit offer? What will happen in case you can’t pay it off on time or miss a payment? You be in a hurry to complete the process. However, it is better to take the additional step and understand the entire fine print. Otherwise, you might find yourself dealing with a service that you don't even need or want that costs you big cash every month.

Taking the Advantage

Actually, it is possible to take advantage from no interest deals. My first one was around ten years ago when I had to purchase the latest set of tires. The company were offering me a US $50 cash card and ninety days same as cash. I gladly took it. I obtained the free cash card and complete the payment as agreed. Finally I end up winning US $50 without paying a dime in fees/interest.

Perhaps an example of the most famous no interest deals is on the furniture. For instance, I discovered an offer in the internet for “No Interest Till Feb 2017.” When I contacted them, I found out the following things. Offer is applicable to purchases of US $2,000 and more. Its monthly payments are distributed evenly across its term of the agreement. 

It means, you would take the total amount of cash and then divide it by how many months till the promotion ends. In case you miss a payment, automatically interest kicks in. The interest rate actually is 23.99 percent and it resets to the whole balance from the starting point. It means you can purchase a home full of furniture with no need to pay any interest till Feb 2017.

Scared of Loans? 4 Reasons You Shouldn't Be

While borrowing money is something that we’re all taught to avoid if possible, there are times when talking to a reputable lender is something that can actually provide some sort of benefit. Loans aren’t something to be scared of all the time. In fact, they’re there to help you accomplish goals and get through crises in a stress-free manner. Here are some reasons why you should be comfortable borrowing money in certain situations that may arise later on. 

Aid When Buying a Home

As one of the biggest purchases anyone of us will make, property is something that basically no one can save up for. This means that a mortgage is the only way forward, giving us the finances that we need for the massive amount of money required. If you choose a loan with an affordable interest rate, you can then buy a place to live in that will also appreciate in value over time. Once you’re finished paying everything back as required by your lender, you’ll have increased your assets and can earn extra cash by selling your home in the future.

Support in an Emergency

There are times when life throws something in your face that you’re simply not prepared for. Whether you end up in hospital or your automobile is damaged, you’ll need some extra cash to get yourself back to normal. Here, talking to a lender such as www.creditnoble.co.uk is a smart idea as they can give you the cash you require to sort out your issues in a flash. In this case, only borrow enough to cover these emergency costs and make sure you can handle the repayments later on. Just because you’re in a crisis doesn’t mean you have to be desperate and thoughtless.

Assistance with Education

There’s a saying that money spent on self-improvement is a worthwhile investment. If you don’t have enough cash to put towards a degree or certificate, borrowing money can be a smart idea. While you’ll have to cover repayments during study, you’ll end up more employable as a result. This means that the interest you end up paying on your loan will then be returned to you in the form of a higher income once you graduate. Taking out some credit is a great way to develop your skills and knowledge if you don’t have the money required for the course you’re interested in.

Help with Home Renovations

Lastly, you might want to improve your living environment by knocking down a wall or building an outdoor swimming pool. Projects such as this are quite expensive but can be worthwhile as they increase the value of your home. This is why borrowing money is a great idea yet again as the interest you have to pay should hopefully be covered by the additional money you get once you sell your property later on. Not only that, but your home improvement loan will also give you the chance to enjoy a comfortable, attractive domestic setting in the years before you sell as well!

About the Author Creditnoble is a marketing company in the United Kingdom that specialises in financial products and services such as instant loans. Visit their website at www.creditnoble.co.uk for more details.