Things You Need to Know Before Deciding to Take an Unsecured Consumer Loan
An unsecured consumer loan is a process where an individual borrows a sum of money from a financial institution such as a bank or finance company for personal or family needs, such as shopping, traveling, paying bills, or covering daily expenses.
Advantages & Disadvantages of Unsecured Consumer Loans
Most consumers often choose unsecured loan packages to solve their temporary financial difficulties for several reasons:
- Unsecured loans provide a flexible financial source, allowing borrowers to quickly and conveniently meet urgent consumer needs.
- The loan process is simple and fast, requiring no collateral from the borrower.
- They offer financial diversification and serve various purposes, from shopping to bill payments or traveling.
Of course, along with the benefits and convenience, unsecured consumer loans also have weaknesses if the borrower is not well-informed financially and has not researched thoroughly, such as:
- Interest rates for unsecured consumer loans are usually higher than those for secured loans.
- There is a risk of falling into the trap of black credit with high-interest rates.
- Financial risks such as bad debt and inability to repay if customers do not have a reasonable spending and financial management plan.
Things to Know Before Taking an Unsecured Consumer Loan
Before deciding to take an unsecured consumer loan, there are important things you need to understand to ensure that your decision is correct and most beneficial.
Identify the purpose of the unsecured consumer loan: This helps ensure that the borrowed money is used intentionally and effectively. Carefully consider the personal or family needs you want to meet with the loan.
Assess the ability to repay: Before signing the loan contract, review your income, monthly expenses, and other debts to ensure you can repay the loan on time and without financial difficulty.
Compare and choose the right bank or financial institution for your borrowing needs: Not all banks or financial institutions offer the same loan conditions and interest rates. Compare and choose the right bank or financial institution that fits your needs and repayment capabilities. It is important to choose a loan product with the most reasonable interest rate and loan conditions.
Read and fully understand the loan contract terms: This helps you avoid unwanted risks like hidden fees, variable interest rates, or unclear terms. Make sure you understand your rights and responsibilities when taking an unsecured consumer loan.
Borrowing with Shinhan Finance
Shinhan Finance provides financial services that help millions of domestic customers become more successful, contributing to overall prosperity and sustainable development across Vietnam. We offer significant benefits to customers taking unsecured loans at Shinhan Finance:
- Minimum interest rates from 18% per year based on decreasing balance
- Loan amounts up to 12 times monthly income and a maximum of 300 million VND, for consumer purposes, serving life
- Loan term from a minimum of 12 months to a maximum of 48 months
- Disbursement within 48 hours after the application is approved
An unsecured consumer loan is a flexible tool that helps you easily and quickly meet personal financial needs. However, managing personal finances when borrowing also requires caution and understanding. By identifying the purpose of the loan, selecting the right loan contract, and leveraging cost-saving opportunities, you can optimize the unsecured consumer loan process and ensure your personal finances are managed effectively.
If you need a loan, you can contact the support channels below to register for a loan right away!
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The fastest channels to register for a loan:
- Hotline: 1900 54 54 49 (press 2 – Loan consultation)
- Website Shinhan Finance
- iShinhan financial management application
- Fanpage Shinhan Finance
- Directly at Shinhan Finance transaction counters: See the address details of Shinhan Finance branches.
Sincerely,
Shinhan Finance
