There will be times in our lives where we will be faced in a situation where we need to borrow money from a third party. A personal loan is one of the common loans that people apply for. While it is necessary to know the right process of applying for a loan, knowing the type of personal loan you are applying for will definitely help you to have a successful loan application. To help you out, here are the different types of personal loan that you may want to consider in the future needs.

Unsecured personal loan

This type of personal loan is not backed by any form of collateral like you car, home etc.  However, approval rate for this type of loan will mainly depend on your credit score. Hence, it is always advisable to maintain a good credit balance.

Secured personal loan

Unlike unsecured personal loan, this type of loan is backed by collateral like hoem or car. When it comes to rate, secured personal loan is usually lower as these kinds of loans are known to be less risky for lenders.

Fixed Rate loan

Another common type of loan is fixed rate loan. Most of fixed rate loans have fixed rates and need to be settled in a monthly of installment basis. It is ideal for borrowers who can afford to pay in a monthly basis.

Variable rate loans

One of the good things about variable rate loans is that it carries lower APRs than fixed rate loans.

Debt Consolidation

Generally, debt consolidation loans roll in multiple debts into a single new loan. Just like fixed rate loans, it is also advisable to pay this debt consolidation ina  fixed rate like monthly or installment basis. For more information, visit สินเชื่อบุคคล ซิตี้

.