What Can A Personal Loan Be Used For?
Personal cash loans are borrowed from banks, credit unions, or online lenders, and can be used for multiple reasons. For example, if you are short on finances., you could use a personal loan to pay off emergency medical expenses, weddings, travel, etc. You could also use one for more extensive, longer-term investments.
In this blog, we cover the basics of personal loans, how they work, and what expenses you can cover with a cash loan.
What is a personal loan?
A personal cash loan is one of the fastest and most convenient ways to access money when you need it most. Generally, cash loans cover personal expenses, including short-term emergency or discretionary fees. 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 is a personal loan different from an instalment loan?
Instalment loans such as student loans, car loans, and mortgage loans are used to fund more specific expenses. Personal loans are more versatile and can be used for almost any reason except for gambling and investing. Whether taking care of unexpected doctor bills or taking a vacation, you can use personal loans to provide you with the necessary funding to cover large purchases.
What are the different types of personal loans?
Personal loans may be secured or unsecured. Fast personal loans require collateral as a condition of borrowing. For example, you may secure a personal loan with a physical asset, such as your vehicle or house. 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 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 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.
Get a personal loan with MoneyShop
If you want to apply for a loan, we make the process as easy and stress-free as possible! With competitive rates, streamlined online service, and helpful loan information, the MoneyShop team are known as New Zealand’s most trustworthy loan provider. Contact our friendly team if you want to talk about small or large fast loan options.