Some small personal loan options include the home equity personal loan, which requires the use of a home's equity as collateral, and a home equity line of credit, which involves taking a revolving amount as necessary and using a home's equity as collateral, reports Debt.org. Short-term personal loans and payday loans are common options among borrowers who need urgent funds. Second-chance personal loans and bad-credit personal loans are other small personal loan options.Continue Reading
Second-chance personal loans aid borrowers with financial crises, while military payday loans cater to military people, explains Debt.org. Bad-credit personal loans are available for borrowers with poor or limited credit history.
Borrowers who own important assets, such as houses or cars, are eligible for secured loans, according to Debt.org. These loans offer comparatively lower interest rates, and the loan amounts depend on the value of the properties used as collateral; however, borrowers who default on payments may lose their assets. In comparison, unsecured loans do not require any collateral and thus have higher interest rates.
Banks and credit unions are traditional sources for personal loans, states Debt.org. Depending on the type of loan, necessary requirements to take out a personal loan may include tax returns, car titles or property deeds, and checking and savings account details. Another option is to borrow from a trusted family member or friend. In this case, it's a good idea to create a formal loan agreement to avoid straining relationships.Learn more about Personal Loans