Personal Loan
Personal Loan Origination Fees: What to Know
Explaining the concept of origination fees, all individuals should be aware of its importance when taking a personal loan. Processing costs or fees are the expenses that your lender charges for evaluating your loan request. These normally vary between 1% and 8% of the loan amount and because it is added to the total sum of the loan, it inflates the cost of borrowing. For instance, if you take a $300 loan with the 5% origination fee, then you’ll have to pay $15 right away. This fee might be deducted from your loan amount, meaning you’d receive $285 instead of the full $300.
Personal Loan Repayment Insurance: Is It Worth It?
This type is called Personal loan repayment insurance, or payment protection insurance (PPI), which is designed to pay off the loan in case such factors as disease, injury or job loss make it impossible to do it. This kind of insurance can be very helpful and offer excellent protection, however, it is very important whether it is worthwhile or not in each case and which conditions are in place for this insurance type.
Personal Loan Repayment Terms Explained
It is important to have adequate knowledge when it comes to the repayment schedules of personal loans. Repayment period is usually between one year and five years, and every option has its advantages and disadvantages. The word you use can greatly affect how much your monthly payment and total cost of the loan will be.