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Published On: Thu, Aug 25th, 2016

Q2 Personal Loan Market Shifts to Better Deals

The market for personal loans saw a decline during the 2nd quarter of 2016, according to the latest report from Bankrate. This is the first time the personal loan market has seen such a decline since it started booming back in 2012. The slowing growth seen over the past year suggests the economy is getting better, hence the lower demand for this type of loan in general.

photo 401(K) 2012 via Flickr

photo 401(K) 2012 via Flickr

Lower Approval Rate

Some lenders report a decline of up to 29% in approved loans. There are a number of reasons behind this steep decline. Other than the improving economy and the decrease in loan applications, many lenders are also lowering their approval rate to reduce risks and balance their portfolios.

A lot of experts are seeing the shift as anything but surprising. As the market matures, it is only natural that new, safer policies are being put in place by top lenders. What’s surprising is the fact that the same trend is seen in several countries, including in the United States and Canada.

More Deals and Special Offers

The slowing market is actually a good thing for personal loan customers. The market is now more competitive than ever, which means lenders and financial institutions are fighting harder for your business. Over the past few months alone, we’ve seen a lot more deals and special offers being made available.

You can, for instance, ask for a better offer to get an interest rate reduction and other discounts. Select lenders, mainly the best and most experienced ones, now offer no pre-payment fee; this makes personal loans even more flexible, since you can decide to repay the loan at any time without having to pay additional charges.

The amount that you can borrow from a personal loan is now in the $300 – $10,000 range, making the loan suitable for anything from dealing with monthly bills to financing your next home improvement project.

An Increase in Online Loans

Being able to apply for a personal loan online is always a huge plus. You can get an online loan approved in just a few hours; once the loan is approved, it is possible to have the money transferred to your account on the same day too. An online loan is basically a personal loan that you can take out from the comfort of your home.

It’s not surprising to see many top lenders now offering the ability to apply for their personal loans online. Before you decide to apply for one, however, here are a few tips for you:

  • Always check the loan terms and understand the costs of the loan carefully.
  • Borrow only the amount you need, not the amount you want.
  • Use the loan responsibly. Make sure you can repay the loan on time to avoid late charges and other fees.
  • Take all the time you need and compare loans based on their total costs. This will allow you to get the financing you need and still save a lot of money along the way.

As mentioned before, the shifting market for personal loans is a great thing for customers. If there is a good time to apply for one, now would be that time. You can find plenty of deals and get the loan you need affordably.

Guest Author: Lolita Di

On the DISPATCH: Headlines  Local  Opinion

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