Personal Loan Lenders

Finding Personal Loans above $2500 from Reputable Lenders

Finding Personal Loans above $2500 from Reputable Lenders

There are a lot options in the market these days for loan settlement. Personal loans can be good choice because of the low interest rates. Yet, qualifying for any type of personal loan may not be that easy because of the lack of any collateral from the borrower to the lender. So, lenders resort to implementing secure and strict guidelines and qualifications for their personal loans especially if you talk about huge amount of money to be loaned.

Two of the most common types of personal loans from lending firms that can give $2,500 to $5,000 of loan amount to borrowers are the credit unions and P2P lending or peer to peer loan services.

Loaning Through a Credit Union

Credit unions operate like banking institutions, only that these are non-profit companies so they offer loans to their members at low interest rates. Before you can loan from a credit union, you have to be a member of the organization. These firms usually exist where there is a common denominator among members, be it from a company, a club or association, a church, or a community.

The goal of every credit union in terms of loan making is to aid the members who are in need of financial support, thus, the reason for it being a non-profit lending agency. In order to qualify for a personal loan, as a member you are obliged to shell out a certain amount of contribution on regular payments as the money received from the members will be used for loans and other purposes.

P2P Lending

Otherwise known as peer-to-peer lending or social lending, P2P lending is a type of lending transaction between peers or colleagues without any involvement of a financial or lending institution. Peer-to-peer lending is born out of the Internet technology, so you can find various P2P sites online that offer loans.

P2P lending sites are categorized into two: friends and family and stranger-to-stranger. Loans provided by the former usually have lower interest rates almost similar to that of government education loans. The latter require a minimum credit qualification and usually charge higher interest.

Compared to banking institutions, peer-to-peer lending has lower interest charge, which is often below 10 percent. This type of loan is attractive to borrowers who did not qualify for bank loans due to issues with credit standing.

Banking Institutions

The bank is known for rendering lending services, and guarantees a secure type of personal loan. But the eligibility will determine one’s qualification for a loan. One very important aspect is the credit standing. Since banks are secured and reputable type of lenders, they also have to be assured of guaranteed monthly payments from the borrowers. The downside with loaning from a bank is the high interest rates.

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Personal Loan Lenders