When you need money to make a purchase, your first step is figuring out where to get the money from. A popular option for those in need of cash is a personal loan. If you’re considering your options, here’s what you need to know about personal loans, including why you should get a loan from a local bank.
Personal Loan Basics
A personal loan is a common solution for individuals in need of money. You receive a lump sum of money that you are then expected to repay in monthly installments plus interest for a set term. Interest rates can be fixed or variable.
How much you can borrow, your interest rates, and your terms are determined by the lender. Several factors are considered, including:
- Your credit history
- Your income
- Your monthly debt obligations
Common Reasons for a Personal Loan
Consolidating Debt
A personal loan can help you consolidate your monthly debt obligations, such as high-interest credit cards. Rather than juggling several payments, you have just one. Typically, personal loans can also help to reduce what you pay in interest every month.
Improving Your Home
A personal loan can provide you with the funds you need to make improvements to your home. You can update your kitchen, remodel your bath, swap carpet for hardwood, and more.
Buying a Car
You can use the money you receive from a personal loan to purchase a car. You can also use the money for other types of vehicle purchases such as motorcycles, RVs, boats, and ATVs.
Making a Large Purchase
If you need to make a large purchase but don’t have the funds to pay out-of-pocket, a personal loan can help. You can use the money for such major purchases as an engagement ring, your dream wedding, or a fun family vacation.
Covering Unexpected Expenses
Emergencies happen and they can be expensive. A personal loan can help you to cover the costs of emergency medical bills, vet bills, repair costs, or any other emergency expenses you may have suddenly accrued.
Reasons for Using a Local Bank for Your Personal Loan
Personal loans can be found in traditional banks as well as online. One of the best places for a personal loan, however, is a local bank.
Personal Touch
While online lenders have their benefits, there’s one thing that they lack: a personal touch. Online lenders don’t know you from the rest of their customers, which prevents them from being able to truly customize your personal loan options.
Local banks like Western Bank focus on you. We take the time to get to know you and your needs so that we can find the best solution for your unique personal loan needs. Real, human interaction and a personal touch trump the convenience of online lending.
Better Rates
Local banks often offer better rates on personal savings and loan products. They typically have better terms and lower fees than larger institutions and online lenders. This benefits you as well as the rest of your local community. Lower rates and fees allow local banks like Western to better meet the needs of more individuals.
Support Your Local Economy
A personal loan through a local bank allows you to support your local economy. Not only are you supporting the bank, but you are also helping to support local small businesses that depend on local banks for their banking and lending needs. When small businesses are able to get the financing they need, they can grow, create jobs, and stimulate the economy in your area.
There are several reasons why you might consider taking out a personal loan. No matter what your reason, getting your loan from a local bank has some significant advantages. To learn more about personal loans, and how we can help you with your loan needs, contact Western Bank today!
