There could be a lot of reasons why you would need a $50000 loan. Pay off some overdue bills, start a business, buy a car or do some work to your home. Whatever the reason, consumers need to shop around for the best deal just like they would with anything else. You wouldn’t buy the first car you went to look at, or even the second or third. Why borrow money from the first or only lender you see? Some important things to shop for in a loan would be a good interest rate and a manageable length and payment on the loan.
If you own a home talk to your mortgage holder about possible options. This is a good place to start because your mortgage holder already has a relationship with you and there may exist an opportunity to borrow against your home at a good rate and with better terms than could be found with a company where no prior relationship exists. This avenue would be especially promising if the money being borrowed were used to improve the home. This way the increased value of the home works to offset the money borrowed against its value.
Another good place to shop is with your insurance company with whom you have a life insurance policy. Some policies allow the insured to borrow against it after some value has been accrued. This would be another company that you already have a relationship, hence you may get a better deal or a discount.
Of course there is always the traditional route of going to a bank or other unsecured money lender. It can be very difficult to get an unsecured loan of more than 40000 or even a $20000 loan. Generally speaking a person must have excellent credit and employment history. Even if a borrower has these things rates and terms for these loans can still be less desirable than secured loans because of the greater risk that the lender is taking.
Do you own shares of stock? Many people have monies invested in 401k/retirement stock plans or own volumes of stock. These same people may be unaware that many stock brokerages will lend up to 50% of the current market value of the stock to the shareholder. This is another form of secured debt and as always, the borrower should pay close attention to the details of the loan such as interest rate, payments and other terms.
If you are a student, student loans are a great way to help pay for school and everyday expenses. Lenders usually pay out more than tuition if applied for and rates from many private as well as federally funded loans are extremely low. Many of these types of loans also do not go into repayment until the person is finished with school.
As you can see there are many options for borrowing mid-size chunks of money depending on your specific situation. Whatever option you choose remember to get detailed information about every lender you interview and compare it to other lenders. Information from one source may look appealing such as a lower payment however there may be other details that make the loan not worth while. Trust in the relationships you have already established rather than being lured in by promises from a company you aren’t familiar with.