An Up-close On Personal Loans

Life is unpredictable and often comes with a series of twists and turns that can throw off even the most meticulous of plans. This is particularly true when it comes to your finances.

An unexpected event such as an uncovered expensive medical condition can drain your bank account and put you in debt. A new job opportunity may require you to purchase a laptop that you cannot afford. Or you could be in the midst of a promising business opportunity that calls for a hefty deposit.

With no other option, we sometimes are forced to sell our assets at a less than favourable prices. Whatever the circumstances, many who are faced with such financial challenges will quickly discover the steely truth – the only person who might truly come to our financial rescue is ourselves.

While some people approach personal loans with doubt and apprehension, it can be a practical solution for those who have a pressing need for quick cash. Here’s why:

1) It is fast

Sometimes not all of us plan our finances down to the T. We may not have bought the right insurance policy or may not have adequate coverage in times of emergency. At times like this, quick and hassle-free personal loan can be our saviour.

In emergency, we do not have time to go through lengthy and tedious documentation processes. We need to walk into the bank and give whatever documentation we have on us to get the money. Time is not our side.

RHB understands these kinds of emergencies and has just the right facilities for this. RHB Easy-Pinjaman Ekspres offers loan approval and disbursement into your account in just 10 minutes. Applicants will be given a savings account and get the Easy-Smart Debit Card on-the-spot.

2) It is low risk & flexible

Personal loans are typically not backed by collateral or security to guarantee the repayment of the loan.

It is basically your word, backed up only by your signature and the legal documents you sign, that you will pay back the loan. Car and mortgage loans are examples of secured loans. If you default on the car loan, the lender can repossess the car.

It is also flexible as it can be used for a variety of purposes from emergency medical expenses, home renovation, wedding, or even for the right investments. If a borrower defaults, his credit score will likely suffer, but he will not face foreclosure or have to surrender an assets, as he would have if he fell behind payments on a mortgage or a car loan.

3) It is fuss-free

Loan requirements may differ from bank to bank. Some may require to present their MyKad, one month’s salary slip, one month’s bank statement, and six months of EPF statements to apply for a personal loan.

However, if you really need the money urgently, a hassle-free personal loan like the RHB Easy-Pinjaman Ekspres is your answer. All you have to do is to bring along your MyKad and head to the nearest Easy branch

Should you go for it?

The answer depends on your circumstances. A personal loan will enable an individual to get through an emergency, fulfil their necessities or (though you should avoid it) your personal desires.

It can also be used to consolidate several debts into one personal loan. By consolidating all your high-interest rate debts and combining it into a single, lower interest rate loan, you could potentially reduce your monthly repayment costs. However, you will need to be careful as this could mean extending the length of your loan and end up paying more overall.

Most lenders will check your credit reports and ask for income information, though proof of assets are often not required. Banks tend to approve loan requests quickly for borrowers with strong credit background.

However, it is important for loan borrowers to ensure that they are able to honour their loan commitments, as failure to do some may affect their credit rating or even land them in legal trouble.

It is very important for you to weigh the pros and cons before you make the decision to apply for a personal loan.