Personal loans can be widely categorized into two types – Secured personal loans and unsecured personal loans. Lenders provide Secured personal loans against security, which is usually your house or any property that you own. The period of collateral is the security against which the personal loan is offered. In the case of non-repayment of the personal loan, the lender can seize your property. Contrary to secured personal loans, the unsecured loans are appropriate for tenants. Even if you are a homeowner, you can apply for a personal loan.
Unsecured Personal Loans
If unsecured personal loans are available to one and all, then is there a need for a secured personal loan? Unsecured personal loans have a specific drawback. The rate of interest on the unsecured loans is higher than that on the secured personal loans. When talking about the rate of interest, what is the APR? It is a highly popularized word, but it is not understood as much. The APR is the annual percentage rate. It is the rate of interest that is charged on your loan. APR is the rate of interest of any mortgage and is inclusive of other charges like the internet, insurance, and some closing allowances.
The rate of Interest
The rate of interest on personal loans can be considered under the head of the fixed rate of interest, and variable rate of interest. This depends on your convenience. The fixed rate of interest on personal loan stays the same irrespective of the changes in the rate of interest in the loan market. You will keep paying the same rate of interest, even if the market rate falls.
Choosing an Advisor
The financial advisor or broker should be considered your partner for life. For this reason, you need to choose them with care. The broker or financial advisor should thoroughly understand your investment necessities. He should know your current financial standing. While dealing with the advisor, you should be aware of their training credentials, products, accreditation, and services that they can provide. Consider whether they function independently or are a list of company contracts. Here are a few considerations that you need to take into account when choosing a financial advisor:
- All the financial intermediaries and advisors need to be appropriate. They should be suitable when it comes to the needs of the FAIS or Financial Advisory and Intermediary Services Act. You should always ask to see their qualifications.
- Seek references and recommendations from people you know to choose a financial advisor. You might even choose an advisor that works for a respected financial institution.
- Look for a financial advisor who can access a variety of specialist support services which you might be in need. It can be something like planning your taxes.
- The financial advisor aims to help you in analyzing your personal circumstances, suggest products, and create a financial plan so as to help you to achieve yours. The product recommendations must be the result of such personal analysis. Your financial advisor is required to reevaluate your financial plan regularly.
Goal of Financial Advisor
The financial needs of a person vary from one individual to another. If something is right for someone, it might not be the same for someone else. The Financial Advisor’s primary goal must be to provide the proper support and guidance. It must be based on your personal circumstances. Financial advisors are fervent about allowing their clients to realize their objectives. Otherwise, it gets tough for them to enable you to recognize and identify your financial goals. For this reason, you need to choose a qualified and experienced financial advisor who is adept with the rule of the game.
