Personal loans & home equality loans are the loans related to the bank management system. Both systems clients got some sort of financial help from the bank or from any financial services. Some benefits of the two loans & some variations will be discussed below:
Personal loan:
A personal loan is a short term loan, refundable by the borrower with a view to help the borrower. But some conditions are there. These loans are given to the borrower for his/her personal interest, or family purpose, or something emergency for any medical purpose.
Advantages of personal loan:
Some of the advantages of the instant payday loans are given below;
Lower interest rate:
The interest rate of the instant payday loans will be a lump-sump amount that can be easily carried-out by the borrower. Also there may be a certain time period to pay back the amount.
Loan values can be higher:
Whenever the person is taking the loan for the purpose, the initial amount of the purpose is much higher than the amount the person is taking or lending. In these criteria the person is taking the benefit of the loan.
Easy to get it:
Personal loan can be convenient, and it is easily gained by the person, because the amount is not bigger than the other types of loan. So the company or the organization that are paying the loan, they do not hesitate or worry to much for the loan amount.
Home equality loan:
Home equality loan are the loans that is provide by the bank, to help or facilitate the person or company. These types of loan include the lien against the purpose of the loans for people with bad credit. Some may take the loan to repair or rebuild or try to begin a new house. It can be often uses for the purpose of paying some major bills, or college education fees. It can be described in two major formats, those are
Home equity term (fixed rate):
In this format the interest rate is fixed by the authority, and if any misdeed happens the bank or the company may take any serious actions against the loan borrower.
Home equity line of credit (flexible rate):
The rate of the interest is minimized, and it is variable in terms of any bad situation of the borrower. In this format the borrower receives the kindness of the lender to pay back the amount within some time extended.
Advantages of home equity loan:
One who is taking the loan may be able to find a way to repay his/her some little debts, by taking a higher home equity loan. Someone may take the loan to reconstruct his/her own home for a better looking. it also have a benefit of investing money in some profitable business.
Findings & Suggestions:
Hence there are some disadvantages of personal loan and home equity loan. In the home equity loan section if the borrower failed to pay back the money with interest, then his cherished home may taken away by the authority, because it worth a lot. But in the personal loan section there is a limited loss of the borrower. So my suggestion is anyone want to take a loan think twice, because once a decision take, it may have some effects too.
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Source: http://biz-finance.net/financial-tips/personal-loan-vs-home-equality-loans
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