Personal loans can be used to finance purchases of a wide range of personal goods including automobiles; furniture and appliances; recreational equipment etc. Since interest rates on personal loans are normally much lower than credit card interest rates, personal loans are beneficial in consolidating debts to lower monthly payments and interest costs. The interest rate charged on personal loans depends on a number of factors including the purpose of the loan; the security taken; the length of the term of the loan; the degree of risk and the amount of business that a client does with the financial institution. Unlike mortgages, it is difficult to compare personal loan interest rates because of these varying factors.
Some features of personal loans are:
• Flexible term lengths
• Competitive fixed or variable interest rates
• Payments can be weekly, bi-weekly, monthly, quarterly, semi-annually or annually
• Consumer loans covering everything from RRSP purchases to vehicles
• Loans open to pre-payment or payoff at any time without penalty
• Life, disability and critical illness insurance available