Personal Loans

A personal loan Connecticut is a loan for the purpose of using money for consumer purposes. Personal goals ‑ these are non-entrepreneurial goals. For example, these may be loans for the purchase of durable goods: mobile phones, furniture, household appliances, cars. A personal loan is also possible in order to pay for various services (medical, educational, tourist). It is possible to provide a monetary consumer loan, which the borrower uses at his discretion. The lender can be either a trade and service organization or a credit organization.

Personal loans by their targeted nature are divided into 2 types:

  • targeted;
  • non-targeted.

Targeted loans are issued, as a rule, at the place of purchase of the goods (in the store). A non-targeted loan is issued directly at the bank. On the basis of the presence (absence) of collateral, personal loans Connecticut are secured and unsecured. Depending on the terms of processing of the loan application, personal loans are divided into express loans (the decision is made in a short time, from 15 minutes to 1 hour) and so-called “classic” personal loans (the decision is made in a period of 2 to 14 days). There are other classifications of such loans.

A personal loan can be issued by an individual who has a permanent source of income. The main source of income for most borrowers is wages. However, there are banks that provide loans to non-working pensioners. There are other sources of income: dividends from securities, income from renting out real estate, etc. Banks mainly take into account other sources of income only if there is a permanent source of income in the form of wages. Alternative sources of income must be documented (for example, when renting out real estate, a tax return must be submitted confirming the payment of personal income tax).

Personal loans Connecticut are issued for a period of 3 months to 5 years.

Features of targeted consumer loan

Targeted loan programs often have more favorable interest rates than classic personal loans. The main feature of a targeted loan is that you can spend funds exclusively for the purposes specified in the contract with the bank: hence the very name of this type of lending. On the one hand, it is not always convenient, but on the other hand, there are advantages that make such loan programs very attractive to borrowers.

Features of the targeted loan

The category of “targeted loan” includes, for example, mortgages, car loans and other programs involving special terms for the use of credit funds. Often banks also offer loans for education, treatment, recreation and other narrowly defined purposes.

The main advantage that almost any target loan has is attractive interest rates. As a rule, they are 1-3% lower than in the case of a regular consumer loan. Also, for someone, it may be convenient to take out a loan when the amount is not given out on hand, but is transferred directly to the seller of the goods or the performer of services, works. For example, you issue a car loan, the seller receives money from the bank to pay for your purchase.

There are also reasons why not all borrowers choose a targeted loan. Usually, when issuing loans of this type, an extended package of documents is required: a pledge can be issued, and the bank can also request confirmation of the targeted expenditure of credit funds. Otherwise, the requirements for documents are the same as for other loan programs.