If a person gets a loan from a lending institution, the lender must simultaneously provide the borrower with the offer and the leaflet for loan insurance. The annual percentage rate (APR) is subject to very strict specific rules. The details of its calculation are detailed on MaxLend Loans website.
Unrestricted personal credit details
An unrestricted personal loan offers flexibility and security. The main advantage of an unrestricted personal loan is its great flexibility since the borrower is completely free to use the funds as they see fit. Unlike car loans or mortgages, personal loans are not intended for a specific project, which means the individual does not need to justify its use. The formalities are lightened and, for the most part, the guarantee is not even compulsory.
Moreover, since the duration is fixed at the time of signature, this type of loan offers people more security than revolving credit (contracted for an unlimited period, and which is responsible for many situations of over-indebtedness).
Loan strengths and weaknesses
Personal loans are great and all, but they have a high-interest rate and certain repayment constraints. However, this same flexibility constitutes a major disadvantage of the loan type. The lender, who does not know where its money is going, considers personal loans a high-risk loan and, thus, protects itself accordingly.
The interest rate associated with an unrestricted personal loan is, therefore, less attractive than that of an earmarked loan. Furthermore, since the borrower is not bound to any specific project, they are still obliged to repay the loan, with no possibility of suspending or canceling it.
How to reduce the cost of a personal loan?
To find the most competitive option, a comparison of several personal loan offers is required. The offers available are plenty; between traditional banks, credit institutions, and Internet companies specializing in consumer credit, people have plenty to choose from. Before a person chooses any one company, they should do some research on multiple companies first.
Thanks to free and extremely efficient comparators, people can enter their personal information (profile, situation, needs) and, in a few moments, they will see a list of the proposals that meet their needs.