All You Need to Know about Personal Loans in Lebanon

The following information is provided by Bnooki.com that is a FREE online platform that gathers data related to financial products and services offered by banks and financial institutions in Lebanon.

Personal loans, that is, loans that are granted for some kind of personal, family or household use, usually come in 2 types – secured & unsecured. The first type are secured against assets such as property, whereas unsecured loans are granted on the basis of credit history and personal income. These loans are available at practically every Lebanese bank and can be repaid in installments over a fixed period of time. 

So how do these loans work? In general, the amount you wish to borrow is loaned out to you from a Lebanese bank for a fixed period of time. During this time, the borrower (i.e. you) pays back a fixed amount each month until the end of the loan period, by which time the loan will have been repaid. In Lebanon, the maximum loan amount will depend on the bank, but it can go as high as 100,000$. In terms of the loan period, the most common length is anywhere from 6 months to 5 years, and in some cases can even reach 7 to 10 years. 

Even though loans sound like a tempting prospect when you’re faced with a shortage of cash, especially right after Christmas, you must be careful. In addition to their ready advantages, there are plenty of pitfalls you should be aware of.

 

Pros

Cons

Possibility of borrowing more than you can with a regular credit card.

Fixed repayment term and monthly amounts.

Debt consolidation.

Flexible use – you can choose what you do with the money.

Quick and convenient – for emergency or fast-needed cash, loans are ideal.

Paperwork is minimal and loans can often be applied online.

Unsecured loans do not require mortgages.

High interest rates.

Good credit rating required – if you don’t have a good credit rating, the amount available and rates offered will not be as attractive.

Extra fees all add up: file fees, monthly service fees, late fees, early repayment fees – the choice is yours!

If you struggle to meet monthly payments, the penalties are severe, plunging you further into debt.

If your loan is secured, your personal assets are at risk if you default.

Basically, loans are a great source of ready cash, but like any financial product, you need to be aware of all the extra fees banks like to add on. So don’t go into it with your eyes closed – read the small print and be aware that you will inevitably end up paying back more than you initially borrowed. 

You can also check bnooki.com to compare personal loans benefit from the team of experts that is available to help and provide you with the adequate personal loan advice free of charge.

For more information on comparing and applying for personal loans in Lebanon, visit Bnooki.com.