When Should You Consider a Personal Loan?

How do you tell if a personal loan is the right money move? Worry not, because we’re here to help! A personal loan comes with many advantages – these typically don’t require you to offer collateral or an asset, are easy to apply and usually take lesser time to approve compared to other loans.    

On the flip side, these advantages can tempt you to apply for a loan even when you don’t necessarily need one. So, when is a personal loan the perfect option for you? Here are four scenarios where a personal loan might just work for you:  

For CIMB credit card users, there is also the option of Cashlite – a hybrid of both products above where you can get cash from the available credit limit and make repayments in fixed instalments for easier money management.

So which should you choose? It all depends on the amount you need, the purpose of your loan and your repayment ability – so be sure to conduct your research and choose the best option for your scenario.  

A personal loan can sometimes also serve a financial tool to boost and to manage your cash flow. Its flexibility allows borrowers to access the cash they need and create a monthly payment that fits into their budget and their capabilities.

However, it is important to note that the personal loan interest rate increases the longer the term of your loan. Learn how to calculate your personal loan interest and repayment here! 

Personal loans can be helpful when used responsibly and not for non-essential reasons. If you need to borrow money and prefer the stability of a fixed repayment schedule and monthly payment, a personal loan is exactly what you need.

Before submitting your loan application, consider the pros and cons of personal loans and compare loan rates with multiple lenders. All the best! 

This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.