What is a personal loan?

When it comes to exploring options to manage personal finances and to meet an individual’s needs, a personal loan is commonly considered if there is a need to borrow money.

This post will provide a quick overview of what a personal loan is, reasons a person may use a personal loan for and what an unsecured loan means.

What is a Personal Loan?

A personal loan allows a person to borrow an amount of money that will be repaid to the loan issuer in fixed payments over a specified period, typically over a number of years. The fixed payments also include paying interest to the loan issuer for providing the lending on the funds.

Personal loans can be used for a variety of purposes such as to consolidate your current debt or used for unexpected expenses that my pop up. These reasons may include home renovations, weddings, travel, funerals, vehicle repairs and maintenance, and more.

What does unsecured mean?

An unsecured loan means the loan issuer does not take any security against any of your assets to provide you with the loan. This differs from a secured loan, such as home loan, where your home is used a security in the case that you don’t pay off the home loan.

As unsecured loans provide extra risk for the loan issuer, the interest rates are typically higher than a home loan or other secured loans.

Is a personal loan right for me?

Borrowing money can be a significant financial decision, so it’s important to do your research to help make the decision that’s right for you. Depending on what your need is and your financial situation, a loan may not always be the best solution. Before we provide you with a Dosh Personal Loan, we are required to make sure you can manage repayments without getting into financial hardship.

With a Dosh Personal loan, you can access totally digital borrowing by being able to apply, manage and repay your personal loan at your fingertips. Borrow between $2,000and $75,000, unsecured, for up to 7 years. Dosh Personal Loan interest rates are fixed between 16.25% and 19.95%. T&C’s apply.

Apply for a Dosh Personal Loan here.

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