A personal loan Memphis TN is a kind of a loan that provides an opportunity to purchase goods and services before the buyer is able to pay for them. In the USA, it is rather undertaking to save extra funds to buy expensive cars or home furniture. People get rid of the need to save money before going shopping by issuing a loan and repaying it in installment payments per month. The issuance of this type of loans started in the 1920s and coincided with the start of mass production of cars. A loan with an installment payment became the basis for the development of the car market, and the issuing of a loan for the car’s purchase still occupies a leading place in loans issued to clients.
Both clients and lenders from Personal Loans Memphis consider it more efficient to pay a personal loan in installments back, and the overwhelming majority of loans (about 90%) are taken out with an installment plan. Payments are made, as a rule, once a month.
Personal loans without installments can be repaid at a single point in time, or a payment account is opened for the client. Loans without installment repayment are issued for the same purposes as with installments, but usually loan amount is less, and the repayment period is up to 12 months. These loans are more often used to pay for services such as healthcare bills, utility bills, etc.
The peculiarities of issuing a personal loan in Tennessee by our compatriots do not particularly differ from the terms for lending to foreign citizens provided by the banks.
This means that it is theoretically possible to take out a loan in the United States, but practice shows that not everyone can do it.
It is easier to get approval if you want to buy real estate in the United States, because in this case the property acts as collateral, which means that if problems arise, the bank will be able to sell the property you purchased in its favor.
Who can issue a personal loan in the USA?
It must be said right away that the terms for issuing loans to foreign citizens in the United States are not as favorable as for the local population. And in order to get approval from the borrower it is required:
- 18 to 75 years of age;
- the presence of a confidential letter from the European bank in which the client is served if you are a foreigner;
- availability of insurance;
- availability of funds for making the first installment – from 30 to 40% of the value of the property.
The chances will increase significantly with documentary confirmation of an income.
Required documents for a personal loan
You can get the opportunity to get a loan in the USA if you meet all the requirements of the bank, as well as if you have the following documents:
- green cards, work visas;
- an ID;
- social security cards;
- income certificates (for 3 years);
- bank statements;
- credit score confirmation.
State regulation of a personal loan
A number of terms for issuing a personal loan are regulated by the state. It obliges the lender to provide the borrower with a significant amount of information in writing, and, above all, what the loan received will actually cost the client, that is, information about how much interest payments for the loan will be on an annual basis.
The first law aimed at protecting consumer rights when obtaining personal loans appeared in the United States in 1969 (the Law on True Information in Lending). Since then, legislation in this area has expanded rapidly. In particular, in 1979 a law came into force limiting the liability of customers for withdrawing money from their account at an ATM using a stolen or lost card.