| You've got a great idea for starting a new | | | | challenges to a new entrepreneur, who may not |
| business, and the only thing holding you back | | | | have built any assets yet, and even if he |
| is, you guessed it, lack of funding. You | | | | has, may not be a position to place them at |
| don't want to borrow from family and friends | | | | risk. |
| and since the finance required is quite | | | | |
| modest, no venture capital firm will bite. | | | | This is where an unsecured personal bank loan |
| So, where do you go? A personal bank loan | | | | can come to his rescue. An unsecured personal |
| might be just what the doctor ordered. | | | | bank loan has no such strings attached other |
| | | | than that the borrower must have a clean |
| Under what circumstances should I consider | | | | credit record (but you can be sure that no |
| taking one? | | | | bank will blindly sign away their money, so |
| | | | be prepared for onerous scrutiny and loads of |
| A borrower may resort to a personal bank loan | | | | paperwork and be cautious about any personal |
| when he finds himself suddenly cash strapped, | | | | guarantees that you may have to furnish). |
| and is in need of a quick injection of funds. | | | | |
| This is one of the most in-demand financial | | | | I don't think my bank will give me one. |
| products, but surprisingly, not all banks | | | | |
| offer them, as they would rather push a more | | | | In recent times, while the popularity of the |
| profitable product like a credit card. | | | | unsecured personal bank loan has been on the |
| However, for business related needs, a | | | | rise, ironically, its supply has tightened. |
| personal bank loan is much more suitable and | | | | This has resulted in the entry of other types |
| offer greater flexibility. What's more, it | | | | of lending institutions, including those that |
| usually carries a lower interest rate than a | | | | are web based, which offer low interest rates |
| credit card does. | | | | and superb service. A couple of examples are |
| | | | E-LOAN and America One Unsecured but we |
| What security will I have to offer? | | | | recommend that you investigate other sources |
| | | | as well. |
| A personal bank loan may be secured or | | | | |
| unsecured. In the former, the lender will | | | | While taking a personal bank loan has its |
| insist on some kind of guarantee that can be | | | | pluses, be aware that it's not always the |
| enforced in case of default. Typically, this | | | | ideal solution. Don't opt for one just |
| takes the form of collateral - where certain | | | | because it seems expedient. Consider other |
| assets are pledged with the lender, who will | | | | important issues, including overall cost and |
| have rights to the same in case the borrower | | | | alternative financing options before you go |
| does not pay up. This poses serious | | | | ahead. |