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Guaranteed personal loans are a wonderful option and can be utilized for a variety of reasons. With a wide range of lenders competing today, a borrower has a wider choice of options available. Here is an overview about the type of loans, their uses, benefits, drawbacks and finer points.

Uses of guaranteed personal loans

Guaranteed personal loans can be used for a variety of reasons. This can include home improvements, purchasing furniture, dream holidays, to pay off high interest rate loans and credit cards, debt consolidation, medical expenses, starting up business or pretty much any other reasons you can imagine as long as it's legal! These can also be used to fill the gaps between paydays with necessary funds. These can be obtained from banks, specialist loan companies, credit card companies and other financial institutions. These are easier to obtain if you have collateral to secure them against.

Requirements to qualify for a guaranteed personal loan

While it is easy to qualify for and obtain a guaranteed personal loan, lenders make the process tougher by often asking for unnecessary documentation. However the important documentation that is often required includes credit reports, proof of identity, proof of residence, salary statements, bank statements, your attest salary slip and proof of your duration of employment. Employment information is sought because a guaranteed personal loan requires the borrower to have a certain income level per month. These loans also require a good credit rating for the borrower to gain approval.

The market

Today's market for loans and the loans industry has evolved to a large extent. Over a decade ago it would not have been as easy to obtain a guaranteed personal loan. However, today the market has changed with increasing numbers of players and options. With the Internet entering the scene, applying for such loans and processing them has become much faster. Different providers continue to offer lucrative options to tantalize and encourage customers to place their business with them.

While this creates a happy scenario for prospective borrowers, it may be wise to remember that the cheapest loan is not always the best. Consider the loan provider and their reputation in the market before deciding to apply for the loan. Read the small print carefully and look out for the interest rate, pre payment penalties and delayed payment penalties if any.