Pros and Cons of Taking Personal Loans

Pros and Cons of Taking Personal Loans

Personal loans have no collateral attached to them. They are easily available and approved and are available in the form of quick cash from the loan providers. They have easy payback alternatives and involve the minimum amount of fuss to obtain them. Let’s look at the pros and cons of taking personal loans now.


No Collateral

The absence of collateral makes these loans more favorable for you to avail them. Consumers can easily take advantage of these loans with a certain amount to fulfill their financial requirements.


Personal loans are easily approved and readily available as there is relatively less fuss attached to this process. Consumers can thus get quick cash as long as they fulfill the basic criteria that the loan providers have set.

Flexibility of Use

Unlike some other kinds of loans, it is not necessary to use personal loans for one specific task or another. These loans can be used for tuition or weddings or business or any other thing that you need money for. There is no restriction on the use of the loan.

Low-Interest Rate

Personal loans have a low-interest rate as compared to other sorts of loans available. These loans are relatively less in amount and are availed for personal needs.

Fixed installments for fixed years

A fixed amount of installment simplifies your life by a whole lot. You can keep track of your installments better and make your installments more easily.


No Part Payments

For personal loans, part payments are not accepted, unless your loan provider allows you to make them. It can turn out to be more expensive in the long run.

Good CIBIL Score

Only customers with a substantial credit score are approved by the loan providers to give a loan to. Not everyone is allowed to get a personal loan, so you need to be very careful with your CIBIL score. The lower your CIBIL score, the more interest you will have to pay for the loan.

Loan Interest Changes with Credit Score

Borrowers who have a low credit score are given loan – if that – on higher interest rates. To make sure that it does not cost you more money than you can afford, make your calculations. Loan providers will have a fixed credit score necessary to give loans to customers, and any borrowers with a lower credit score than that will have to pay more interest.

The lawsuit in the Air

Personal loans come with the danger of lawsuit attached to them even when they don’t have collaterals attached.

Small loans

Banks offer loans to make more money over small amounts which prove profitable for them in the long run.

If you are in need of a business loan, First Union can help. We offer loans from short term loans to lines of credit. Call today!

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First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well. California loans made pursuant to the California Financing Law, Division 9 (commencing with Section 22000) of the Finance Code. All such loans made through VBJ Consulting, LLC, a licensed finance lender/broker, California Financing Law License No. CFL#60DBO78163

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