What is a Personal Loan?
A Personal Loan is an installment loan that is repaid over time with a set number of scheduled payments. Personal Loans are a versatile form of funds that can be utilized for nearly any of your needs, wants, goals, or dreams! Personal Loans are often faster and easier to obtain than other types of financing.
Why Do I need a Personal Loan?
The following are some of the most common reasons that borrowers take out a Personal Loan:
- Consolidate Past Debts
- Pay off Credit Cards
- Finance Home Remodeling
- Pay For A Wedding, Engagement, or Honeymoon
- Cover Moving Expenses
- Finance Funeral Expenses
- Pay for Medical Bills
- Buy a Car, Motorcycle, Boat, RV, etc.
- Go on a Dream Vacation
Interest Rate- APR
The APR (Annual Percentage Rate) on your Personal Loan depends on the loan amount, term requested, and your credit score and history.
Secured Loan vs. Unsecured Loan
A secured loan is one that is connected to a piece of collateral, such as your savings or certificate accounts. With this type of loan, a lender has the right to take possession of the collateral if you do not repay your loan as agreed upon. Secured loans offer better rates than unsecured loans and are easier to obtain due to lower lender risk. This may be the best option for you if you have low credit or are rebuilding your credit.
At Alden, you can borrow up to 90% of the balance of your collateral account when taking out a secured loan. This makes it likely that you will be able to borrow more money than if you used an unsecured loan, which has a maximum borrow amount of $5,000.
An unsecured loan is not connected to collateral. This means that if you default on your loan, the lender cannot automatically take your assets to cover your debt. If you are turned down for an unsecured loan, you may have better luck obtaining a secured loan.
- Up to $5,000
- Terms of 24, 36 and 48 months
Share Secured Loans
Secured by your savings or certificate accounts, these loans offer better rates than unsecured personal loans.
- Savings continue to earn interest even while they serve as collateral
- Available at a maximum of 90% of the balance in your collateral account
To speak with or set up a meeting with one of our friendly loan consultants, call us at 413-536-0475 or visit our Chicopee or Belchertown branches.