When faced with unexpected expenses, major purchases, or debt consolidation, a personal loan can be a valuable financial tool for many borrowers. However, understanding the ins and outs of the personal loan application process is essential for your financial success. Our team at Legacy Bank serves customers across the state, with physical locations in Wichita, Colwich, Pratt, and Sedgwick, Kansas, and is dedicated to ensuring our customers are equipped with the information necessary when applying for a personal loan. Find out everything you need to know about applying for personal loans below!

How Do Personal Loans Work?

Before applying for a personal loan, it’s important to have a clear understanding of what personal loans are and how they work. Personal loans are unsecured loans offered by banks, credit unions, or online lenders. Unlike loans secured by collateral (such as a vehicle or home), personal loans are typically based on your creditworthiness and income. They provide borrowers with a lump sum of money that must be repaid over a fixed term, usually in monthly installments.

What Are the Different Types of Personal Loans?

Personal loans offer several benefits that make them an attractive borrowing option for many individuals. At Legacy Bank, we offer some of the most competitive personal loan rates in the area and have many loan options designed to meet your individual needs. Some key benefits of opting for a personal loan include:

• Unsecured Personal Loans: These loans are not backed by collateral and are based primarily on the borrower’s creditworthiness. They offer flexibility and can be used for a wide range of purposes, such as debt consolidation, home improvements, or medical expenses.
• Secured Personal Loans: Secured loans require collateral, such as a vehicle or savings account, to secure the loan. The collateral acts as a form of protection for the lender, which may result in lower interest rates compared to unsecured loans. Secured personal loans are often used for larger loan amounts or borrowers with lower credit scores.

Benefits of Personal Loans

Personal loans offer several benefits that make them an attractive borrowing option for many individuals. At Legacy Bank, we offer some of the most competitive personal loan rates in the area and have many loan options designed to meet your individual needs. Some key benefits of opting for a personal loan include:

• Flexibility: Personal loans provide borrowers with flexibility in terms of usage. Whether you need funds for home improvements, debt consolidation, education expenses, or medical bills, personal loans can be used for a wide range of purposes. Unlike certain loans with specific restrictions, personal loans allow you to allocate the funds as needed.
• Quick Access to Funds: Personal loans often have a streamlined application process. With minimal documentation and online applications, borrowers can receive loan approval and access funds within a short period, making them a viable option for emergency expenses or time-sensitive financial needs.
• Stability: Most personal loans come with fixed interest rates, meaning the interest rate remains consistent throughout the loan term. This provides stability and predictability in monthly payments, making it easier to budget and plan for repayment. Fixed rates also protect borrowers from potential interest rate hikes in the future.
• Debt Consolidation: Personal loans can be used for debt consolidation purposes. By combining multiple debts into a single loan, borrowers can simplify their financial obligations and potentially secure a lower interest rate. This consolidation can make it easier to manage repayments, reduce the total interest paid, and even improve credit scores over time.
• Credit Building: Responsible borrowing and timely repayments on personal loans can positively impact your credit score! By making consistent payments, you demonstrate creditworthiness and responsible financial behavior, helping improve your credit profile.

How Can I Apply for a Personal Loan?

If you’re interested in applying for a personal loan, remember to compare loan options, assess your repayment capabilities, and borrow responsibly. Because it’s important to choose a loan that fits your financial situation and repayment capacity, our team at Legacy Bank has dedicated loan professionals ready to help guide you through the application process! Meet with a member of our team to get started today, or view our various loan options and apply online.

Access our Simple Loan Calculator and let us calculate your loan amount or monthly payment!