Private Loans and Private Money Lenders in India
There are many people who take different types of loan like home loan, car loan, personal loan, etc. They don’t think about the repayment at that time. Keeping the track of all the due dates, its monthly repayment, etc might make you crazy. To cope up with this tension, one can go for loan consolidation. Loan consolidation offers a single loan for multiple loans at a much lower interest rate. This reduces the tension as only one installment is to be paid and also saves on your money.
Nowadays education has become very costly, but every parent wants their child to be educated. It becomes difficult for the parent to arrange funds to pay the school fees, college fees, tuition fees and other expenses. Thus many loan consolidators provide private student loan or private school loan. Private student loan consolidation is a great tool as it allows the borrower to merge all the private education loans and thus gives benefits of reduced monthly payment and repayment in longer period of time.
Private loans are further classified as follows:
- Secured Private Loan
- Unsecured Private Loan
Secured Private Loan: Secured private loan like any other secured loan requires collateral as security. The collateral can be in the form of property, equipment, machinery, etc. In case of default, the collateral is sold to recover the amount. The interest rate is cheap as there is collateral in case of default. An individual should borrow the amount which he would be able to repay without any problem as collateral is attached with the loan amount.
Unsecured Private Loan: Unsecured private loan does not require any security. This is suitable for people who don’t want to attach their personal assets to any obligation. The interest rate is high as there is no collateral in case of default.
People with bad credit history can also get the unsecured loan. But the rate of interest is high as the credit score is low. Thus you should apply for the loan amount which you can repay without any hassles. Don’t apply for the loan amount which will create problem later on in repayment and thus reduce your credit history.
Private student loan consolidation is a great way to significantly lower your monthly loan payments by combining all your private student loans into one manageable loan. Refinancing your private student loans will reduce the stress of multiple payments and allow you to budget more effectively while lowering your interest rate. Before selecting loan consolidators thoroughly go through their terms, conditions and interest rates and keep reviewing them as their rates might fluctuate.