Getting Bank Personal Loans

Bank personal loans are a great product if you can provide good loan credentials. Going to your local bank for a loan is a good idea because you will be dealing with people you already have a personal relationship with. Even if you don't know any of the bank employees personally, the relationship still exists because of the account or accounts you hold with the bank. That could come in handy if you are a borderline loan decision. In any event, becoming more familiar with bank officials is never a bad idea.

Advantages of Bank Personal Loans

• Reliable lender. While the landscape is quite a bit more uncertain online, your local banker is a known commodity and there is no concern about scams. That doesn't mean you shouldn't be cautious and ask about all fees and any provisions of your loan that seem too restrictive or unfair.
• Many loan products. Banks, particularly larger banks, will have a variety of loans and terms to offer, particularly if you can provide a solid lending picture. The ceiling on bank personal loans is often higher than elsewhere - perhaps up to $100,000 - and you should also be able to find longer repayment options with banks.
• Discounts may be available. It's not uncommon for banks to offer a quarter-percent discount on loans in which the monthly payments are automatically taken out of a bank checking account. The discount saves the borrower a little money and provides some security to the bank. Loans that are automatically debited tend to default less often than loans that rely on payment each month by the borrower.

Disadvantages of Bank Personal Loans

• Lower rates may be available elsewhere. Banks often do not offer the very lowest rates. It's often possible to find a lender online with a more competitive product. Of course, you have to be careful about making sure that company is a reputable lender.
• Longer loan process. Both the application process and the time it takes to get an answer on bank personal loans often takes longer with banks than with online lenders. Part of the reason is that online lenders can operate, to some degree, 24 hours a day and banks do not.
• More stringent requirements. While it is true that banks may offer some consideration to a borrower who also has an account at the bank, it also is true that most banks have fairly stringent requirements for loans. That means it's more possible to be turned down for bank personal loans.