What Are Your Financing Options?: 4 Loans to Choose From

Feb 18, 2021
finance

Not having the right amount of capital at the important milestones in your life shouldn’t stop you from being a step closer to your dreams. There’s a wide selection of loans available for people who need some extra help with their financing options, ranging from tuition fees to mortgage payments.

Understanding the different uses of personal loans

Personal loans are usually the best alternative for people who cannot secure other forms of credit. It’s a common option for home improvement projects that add value to a real estate property. Additionally, some people use it as a financing option to consolidate high-interest debt, allowing them to pay it off sooner with lower interest rates.

In this article, we’ll give an overview of four personal loans and what you can use them for.

1. Personal loans for general purposes

Personal loans are ideal for securing different kinds of purchases, from major to minor home renovations. It’s important to check with your bank to determine your loan conditions, such as the loan amount, monthly repayments, and loan term. These will depend on your financial records and credit history.

2. Student loans for tuition fees

Having a good education goes a long way to landing you a rewarding career in life. Many people continue schooling even in their adult years to follow their individual career paths, whether they want to be lawyers or marketing experts. Although you may not have enough savings to secure your tuition, you can secure a student loan to cover most of your educational costs. It allows you to get started on your career track without worrying about the immediate financial obstacles you have to overcome.

3. Home loans for real estate

Owning a home can be a major milestone for most people. However, if you plan to build or buy a new home, it’s necessary to have a sizable amount of capital to spend. Home loans allow you to finance your dream home with a wide selection of loan options and packages. This enables you to gauge your monthly expenses before you lock in a specific housing loan.

In relation to home loans, pension-backed housing loans allow you to take from your retirement savings instead of having a bond for your contract. These monthly instalments will reflect on your monthly salary, enabling a maximum loan term of 30 years or the time remaining until your retirement.

4. Vehicle financing for a new ride

Besides having the right home to accommodate a new milestone in your life, you may want to invest in a quality vehicle that matches your new needs. This is a necessary expense, especially if you’re far from commute routes or if you’re planning to start a family. Vehicle financing allows you to purchase a vehicle and have a leeway of 12 months to 5 years to repay it to your lending provider.

Conclusion

Personal loans are just one of the many financing options you should consider before making a heavy commitment to a purchase or investment. This is why it’s vital to be informed of the different rules and policies that can be beneficial or harmful to your current financial situation. Besides securing loans from traditional sources, you can now engage in alternatives that can provide better rates and terms for your benefit!

Instead of limiting yourself to traditional loaning options, there are now online solutions that can remedy your financial needs. Hoopla Loans is an online-based loan broker in South Africa that enables borrowers to secure personal loans, payday loans and more with the touch of a button. Register with us today, and we’ll ensure that you’ll match with the right provider!