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