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Lifestyle / August 2021

What Can A Personal Loan Be Used For?

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A personal loan is any amount of money that you borrow from banks, credit unions, or online lenders, and they can be useful for multiple reasons. If you’re short on finances, you can use them to pay off emergency medical expenses, wedding expenses, travel, and so much more. Easy personal loans can also be extremely beneficial when you’re consolidating debts, and they can even boost your credit score after paying them off. Today, we discuss the basics of personal loans, types of personal loans, how they work, and what expenses they can cover.

What is a personal loan?

A personal loan is one of the fastest and most convenient ways to get access to money when you need it most. Generally, a personal loan is used to pay for personal expenses, including short-term emergency or discretionary expenses. Since personal loans in New Zealand are flexible, you can use them to cover a multitude of things such as:

  • • Educational expenses while you’re part-time working.
  • • Home renovations and repairs.
  • • Wedding costs.
  • • Medical bills.
  • • Reduced interest rates
  • • Debt consolidation.

How are they different from installment loans?

Installment loans such as student loans, car loans, and mortgage loans are used to fund more specific expenses, including education, vehicle purchases, and home purchase. Personal loans are more versatile and can be used for almost any reason except for any form of gambling and investing. Whether that may be taking care of unexpected doctor bills or taking a vacation, you can use personal loans to provide you the necessary funding to cover large purchases.

What are the different types of personal loans?

Personal loans may be secured or unsecured. Secured personal loans require collateral as a condition of borrowing. You may secure a personal loan with a physical asset, such as your vehicle or house. This means that when you default on the loan, the lender could take your collateral to fulfil the rest of your debt.

Unsecured personal loans don’t require any collateral for you to obtain the loan. There are banks, credit unions, and online lenders who offer unsecured loans with no collateral to collect. This usually means borrowers must pay higher interest rates for an unsecured personal loan.

How can I apply for a personal loan?

You can apply for a personal loan from banks, credit unions or reputable online lenders. At MoneyShop, you can conveniently apply online for a loan between $200 to $20,000, and the application takes as little as two minutes! Our expert team will review your application. Once your application is approved, we’ll discuss the given loan terms and fund the loan once you confirm the established loan agreement.

What is a personal loan agreement?

A loan agreement protects the borrower and the lender from any form of confusion or dispute. Within a loan agreement, you will find basic information regarding the loan, including interest rates, repayment terms, fees, penalties, and stipulations applied to the loan.

Fund almost anything with a personal loan from MoneyShop!

At MoneyShop, we give you access to personal loans to fund your emergency expenses or debt consolidation, offering competitive rates and providing you the funds in as few as two hours. Short on money? Apply for a personal loan today!

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