27th March 2013 - 6 min read
Glancing through our archives we’ve noticed that we’ve churning out quite a few pieces on personal loans deals and promos without stopping to think that somewhere out there is a segment of our readers who may not even understand what personal loans are all about.
It may be shocking to read but there a lot of people out there who are unfamiliar about personal finance management but are afraid to ask. Of course in today’s knowledge driven economy it’s absolutely understandable. Nobody wants to feel stupid by asking about stuff that seems so basic.
Us guys at RinggitPlus totally get this, that’s why to get you started on the fast track to financial freedom we’ve compiled a mini-introduction to personal loans.
To put it simply, personally loans are money you can ‘borrow’ from a financial institution at an agreed interest rate which you will be able pay back slowly in a few years. People use these types of loans for a variety of pursuits: buying a car, paying for uni fees, making your dream wedding come true, ordering a Siberian Husky off eBay, anything really as long as it’s not for business purposes.
There are two kinds of personal loans:
Unfortunately there is no one right or wrong answer for that. It really depends on your financial standing and reasons for getting a loan. If you are in need of emergency cash to fix your roof and are sure you will be able to pay it back in a couple of years then an unsecured personal loan is your best bet.
But if you’re a fresh grad for example who has been bumming for the past three years since you graduated and in need of a car to get to work then getting secured personal loan with mom and dad in tow might be a safer choice.
Some really smart and experienced people opt for loans even though they can afford it. For instance, instead of dipping into your savings for a new car you could instead secure a car loan and keep your money for more fruitful investments.
We’ve all been told repeatedly to read the Term & Conditions carefully, but frankly the way those things are worded it’s not surprising that so many people are still clueless when it comes to our personal finances. When in doubt a simple phone call or face-to-face with a bank officer might help. The downside to this is that he/she might spout out a slur of bank jargon and terms and this can be very intimidating. The good news is that by learning a few common key words you can ask specific questions and actually get information that is relevant to your needs.
You must be feeling a whole lot more confident right now. As you can see, personal finance is not that hard once you strip off the convoluted language and terms. Now that you’ve got the basics down pat you should know that on top of the loan you are entitled to a few additional perks as well. The benefits vary from bank to bank but the most important thing to remember is that they all want your money so go on out there and exercise your right as a consumer and make them work for it!
Examples of extras you can squeeze out of your loan provider:
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world