Whatever is the reason, personal or commercial, you may need to take on a loan some time or the other down the road. In order to make sure that you get the right type of loan from the right source so that it matches with your needs and repayment capacity, you will need to consider the terms and conditions of the loan before applying for it. However, prior to that, you will need to know the right sources that provide such loans and when to approach whom.

Ideally, there are different places from where you can get the cash you need whether it is for buying a car or a home, fund your business or education of your child or simply to get you through to the next paycheck.

Statistical reports of the New York Fed show that the total indebtedness for households in the US alone is more than $13 trillion. This was the figure found by the end of 2017 and therefore it is natural that the amount has significantly increased within the next couple of years.

The reason that most people borrow money is that it is in the DNA. It is also the need and the given condition that leads one to a lender. Most of the people simply cannot afford to buy a car or a home outright with their savings or investments. They will need to take on a specific loan for that.

However, taking on a loan can be risky as well as lengthy and an emotional process. You have to be therefore careful when you borrow so that you do not end up in a fix or borrow an amount that you cannot repay.

Sources to contact

It is, therefore, paramount that you find the right source and know who to turn to. To meet your financial needs at its best you will need to make the best decision and contact the right sources.

National banks:

• Several national banks time and again out for their specific personal loan programs. Sometimes, these banks make their personal loans programs more attractive to their already existing customers. This trend is not limited to the major banks but there are also a few good online banks that you can check out that offer nationwide service to access to a wide variety of loan products.
• The reason you should go for these banks is that it will offer you a plethora of options, a wide array of fees, loan terms, incentives, and more. They will also offer convenient features.
• However, people do skip big banks as they lack in customer service and you may find it difficult to get in touch with the real person on the phone to assist you. Inexperienced bank agents, lack of flexibility, strict rule are few other reasons people avoid them.

Credit unions:

• This is becoming a popular alternative source to banks for loans. Ideal for local businesses they are usually headquartered in the community they serve.
• The primary reason to borrow from them is the lower rates offered than banks apart from the convenient location that allows you face-to-face chat with an expert.
• Though they are flexible some people avoid them because there may be limits to products and technology curve that may not allow you to pay online or check payoff progress.

Online fast-money lenders:

• You can find different online sites such as Nationaldebtreliefprograms.com and others that will also provide you with loans along with tips and suggestions for debt relief as well.
• The reason to borrow from them is you get loans fast and from the convenience of your home. You can see the money in your account within 24 hours sometimes as they provide quick loan approval. It is a good alternative if you have bad or even no credit.
• However, they may charge insane interest rates and the cost and fees keep piling up. If you fall into this cycle, it can be really hard to break out which is why few people consider other options.

P2P lenders:

• They are online lenders making it big in peer-to-peer lending to people who cannot avail traditional bank loans. Often offered by individuals, P2P loans have very reasonable interest rates. The loan term usually ranges from three to five years.
• However, the credit underwriting system followed by the P2P lenders may end up with a high interest rate.

Retirement plans:

• If you have an employer-sponsored retirement plan you may take a loan from it as well if you are eligible. Though the IRS has limits on the amount you can borrow from 401(k), it is a good resource for quick cash requirements.
• The reason to borrow from your retirement plan is that it is technically your money, interest rates are competitive, and you usually get five years to repay it.
• However, by taking out some funds from your account even for five years, your retirement benefits amount can be affected as it will not grow for that period and may set you back years from your retirement goal.

Cash advances:

• You can also avail cash advance from your credit card. Just visit an ATM and you get the required money in seconds.
• However, in most cases, the interest rate on a cash advance is very high and will come with an additional fee making it more expensive.

Private businesses:

• Today, even businesses sell pricey items on loans. They offer to finance on easy terms and you do not have to go through the long loaning process at the banks. They also offer huge discounts if you buy any item from them on loan.
• However, these businesses being a middle man, you may not see the rates and terms of the competitors thereby deprived of a better deal elsewhere.

You may also choose to take out a loan from the payday lenders when your options are really tight but are okay with outrageous fees and interest. Your parents and friends may also help but make sure that you treat their money as actual loans and sign a contract.