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5 Types Of A Personal Loan You Never Knew About – All In One Place

5 Types Of A Personal Loan You Never Knew About – All In One Place

A personal loan/loans are unsecured credit given to borrowers by financial institutions such as banks. 

These institutions check the overall eligibility of the candidate based on criteria such as income level, capacity to repay, history of employment, type of the profession, and credit history.

Much to your surprise, there are many streams to the concept of Personal Loans, stretching to some situations that you never knew could allow you to avail of a loan. Read on!

Debt Consolidation loan

This loan is a personal loan category that allows you to take out a single loan to repay other multiple debts like credit card debts. These loans are divided into two major categories – secured and unsecured loans.

For example, if you own two credit cards and owe AUD 10,000 on each one, the bank or financial institution will issue you a loan of AUD 20,000.

Debt Consolidation loans are usually applied by people when they face difficulty paying their minimum monthly expenses. There are varying requirements to avail of this personal loan.

Veterinary loans

Believe it or not, you can opt for Personal Loans for paying the veterinary bills for your loving pet. Whether you have a cat, dog, or even a parrot, financial institutions understand that the costs can be expensive for most people.

They help you cover the vet bills and emergency costs for your pet’s health issues through a tailored personal loan called a Veterinary loan.

This loan helps pay for sudden surgeries, rehabilitation, extended pet treatments in the hospitals, and other expenses for your pet.

Travel loans

Travel loans are slowly and steadily gaining popularity in today’s day and age. This is a personal loan used to travel. This travel can be scheduled for a domestic or international trip.

Suppose you are planning to visit the US to meet your relative, and there is a cash crunch while going there; the loan can reduce your financial pressure by leaps and bounds.

Funeral loans

Death is one of the most uncertain aspects of life. Often, families are not prepared to face the end of their loved one, let alone pay for the funeral. This situation is where funeral loans come in handy.

A funeral loan is a sub-type of personal loan which helps the borrower pay for the funeral expenses

Funeral expenses have been rising over the years, and goods such as the casket, services by the funeral home, and places on the gravesite can be expensive. 

Add to that any possibility to travel and stay at a hotel. Overall, the costs could be pretty high.

House float loans

Adjustable-rate home loans or house float loans refer to particular home loans whose interest rate isn’t fixed to a specific value. It changes throughout the loan period according to changes in the market rate.

The Bottom Line

A personal loan is meant to help you with financial issues on the personal front. The unique show experiences many problems, but luckily you will most likely have a personal loan category that can aid and support you. 

Lastly, it is recommended to only take loans from financial organisations that are legal and certified. Perform market research to know the best loan offers and minimum interest rates in the market.

 

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