8 Types – Personal Loans To Managing Your Emergency Expenses

Create Dofollow Backlinks: Personal loans are great credit lines for emergency expenses. It proves to be best when you need a one-time specific amount. It is an EMI-based loan. The EMI has to be repaid with interest over a fixed period or term.

This credit line is extremely versatile and can come in a variety of forms. Below are the different types of personal loans that you can avail yourself for emergency funding:

Unsecured personal loan– An unsecured personal loan is not supported by any asset or collateral. That’s why it may be easier to obtain such a personal loan. To get this type of unsecured loan, you must have a good credit score and a regular source of adequate monthly income.

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Secured personal loan– As the name implies, a secured personal loan is borrowed against the mortgage of assets such as a house, car, gold, insurance, etc. In case of any default, the lender may forfeit the asset to cover all or part of the balance.

A personal line of credit– This is quite similar to a credit card. In this case, borrowers get access to a certain amount of credit line that can be borrowed whenever needed. A great credit score and credit history are needed to avail of this loan.

Personal loan against credit card– A cash advance facility is there when you have a credit card. This is a short-term personal loan. You can borrow it against the available balance of your credit card.
Pension loans- Pension loans are personal loans specially designed for retired workers. These loans come with long-term and small loan amounts.

Fixed interest rate personal loan– In this credit line, the interest rate on personal loans remains unchanged for the entire tenure of the loan.

Adjustable interest rate personal loan– Under this loan, the interest rate change over time. Usually, it starts with very low interest, and over time it may increase.

Payday loans– A payday loan is a short-term loan with a term of two to four weeks. It will cover your expenses until next payday.

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