Personal Loan describes any loan where money that is borrowed is to be used for personal use. If you are taking out a loan to fund something to be of personal use, or to help you out with personal issues, then that is a personal loan. Personal loans can be used for any number of things: debt consolidation, home improvement, paying off high-interest rate credit cards, car purchases, vacations, etc. Most personal loans are unsecured, meaning they do not require security or collateral.
An unsecured personal loan is a loan that does not require collateral to back the loan. Usually, the people who would be eligible for this type of loan would be people who do not own a home, or people with bad credit. An unsecured loan normally means less risk to the person taking out the loan. This is due to the fact that a person will not have to use their home as insurance for the loan. However, due to the lack of collateral, the interest payments on any unsecured loan tend to be a little higher than with a secured loan.
A secured personal loan is normally assigned for homeowners. This is because a home is used as collateral, and the loan amount is usually for more, up to $15,000. This presents a higher risk to the lending company, so this type of loan requires some security or insurance. A secured personal loan can be used to make home improvements, for which you can borrow money secured on your home and increase the homes value.
There isn’t much of a difference between a bank loan and a personal loan, they are essentially the same thing. However, borrowing from a bank generally requires a very good credit history. Shopping around and getting loan quotes over the Internet allows you to compare interest rates and find the best deals.
Getting a personal loan with bad credit is no problem. Unsecured Loans for $1000 or less do not require a credit check or collateral, so if your credit is in bad shape it is not an issue. The only requirement for a bad credit personal loan is that you have a checking account with a bank. For loans of higher amounts, you may be required to be a homeowner and put up some collateral if your credit is not perfect. However, this all depends on the loan company and the amount of money you want to borrow.
To find the cheapest loan rates with the lowest interest you need to shop around. Getting online loan quotes allows you to compare the rates and terms offered by several or more lending companies. Doing this online saves time and is a lot quicker.
Once you have completed the online application and applied for a loan quote you will receive an instant reply. Depending on the type of loan you are interested in, the amount of money you want to borrow, and the lending company, it can take between a few hours to a couple of days before you receive your loan. Most unsecured personal loans $1000 and under can be processed overnight and your money can be wired directly into your checking account.
When you apply for a loan through Modern Lending Solutions, we connect you with hundreds of lenders instantaneously. Once you are aligned with a lender, they will only do a "soft" credit check that won't affect your credit score. Based on customer feedback, we learned that our customers had their credit scores affected in the past when they applied for a loan and were turned down. Don't worry. That won't happen with Modern Lending Solutions.
When you request a loan through Modern Lending Solutions, we will ask for some basic personal information, as well as some financial information like your source of income. Once you complete the request form and click submit, we go to work! We quickly connect you with hundreds of lenders and focus on the ones that will likely provide a "yes" based on the information you provided. We share some general information (not the sensitive personal stuff) so the lender can "pre-qualify" you for a loan. You will then be redirected to the lender's website, where you can finish the loan request. Rest assured, once you are directed to the lender's site, you are almost certain to get your loan approved. That's how we make your life easier!
If you requested a loan through our website, it is likely that you received a notification that you’ve been prequalified. This would be presented at the end of the request process or through an email afterward. The best way to think of this is as a “soft yes”, with a few final steps to complete. This prequalification comes from the information that you provided when you requested the loan. It may also include a “soft” credit check that the lender requested. By using your request to connect with hundreds of lenders, we are able to find you a lender who can provide an immediate prequalification, pending your submissions of any required documentation.
Disclaimer: Modern Lending Solutions ( is not a lender. We offer a matching service for connecting potential borrowers with financial institutions. Loan amounts, rates, and terms will vary based on lender’s decision, and approval is not guaranteed.
Offers provided to customers feature rate may no greater than 35.99% APR with terms from 61 days to 180 months. However, your actual rate depends on credit score, loan amount, loan term, and credit usage and history, and will be agreed upon between you and the lender. An example of the total amount paid on a personal loan of $5,000 for a term of 36 months at a rate of 10% would be equivalent to $5,808.09 over the 36-month life of the loan.