We explain loans and compare interest rates.

 

It is not uncommon for a particular type of loan to go under several different names and this is precisely the case with the word blanc loan. Here on the site we have chosen to use the slightly more common word loan instead. This is actually exactly the same type of loan which means it is a loan without collateral. If one is to be really careful, the smaller micro-loans can also be included as a blank loan as these also have no collateral. But in everyday life when you talk about a bank loan or a private loan you mean the classic bank loans that can be searched to cover some kind of cost.

Blank loan size

Blank loan size

A bank loan that you can take from the classic banks is usually between USD 20,000 – 350,000. There are a number of other lenders who also offer their customers with interbank loans, and it is then usually possible to borrow from USD 10,000. However, it is common for those lenders who offer smaller loans to borrowers also charge a higher interest rate for these.

Unsecured Loans

Unsecured Loans

A bank loan is thus a loan without collateral, which means that you do not have to have anything of value as collateral for the lender. For example, a home is used as collateral for a mortgage. That the loan is unsecured means that there is a greater risk for the lender to lend the money, which results in higher interest rates compared to, for example, mortgages.

The advantage is that you can use money for whatever you want. What the lender only cares about is that you have a sufficiently high income each month to manage to pay the running costs of the loan.

General loan

General loan

A blank loan is a loan that can be used for virtually anything as long as it does not cost more than the maximum limit for the loan. However, it is a good idea to first check if there is any other type of loan that fits better than what you intend to do with the money. There are many different special loans that are designed to suit the specific event.

Collect loans

Collect loans

A good example of one thing that a bank loan can be good for is if you want to repay other expensive loans under a cheaper loan. It is not uncommon to have many different smaller loans in different places that cost a lot each month. In such cases, it is a good idea to take out a larger loan that can be used to repay these loans.

Two things to keep in mind is that, first of all, you do not take a bigger loan just because you can possibly do it. Borrow only money to repay your debts otherwise there is a risk that the costs will go away.

The other thing to consider is if you have something that you can offer as security. For example, if you own a house that is not fully mortgaged, it is usually better to take out a larger loan on this as the interest rate is lower than for a mortgage loan. If you do not own a house or similar with which you can do this, a mortgage loan is a good alternative as it is clearly cheaper than the expensive small loans.

 

Leave a Reply

Your email address will not be published. Required fields are marked *