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$10,000 Personal Loan

Getting a personal loan for a large amount such as $10,000 is actually easier than most people realize. There are many lenders willing to make $10,000 personal loans because they can make quite a bit of money on such a loan.

A personal loan is a direct advance of cash usually deposited directly into a borrower’s bank account. Personal loans; which are also known as cash advances, come with high interest rates and strict terms.

A borrower will usually be required to pay a cash loan off very quickly or face stiff penalties such as high fees and interest. Many personal loans will come with an automatic payment provision that enables the lender to take payments directly out of the borrowers account via electronic funds transfer. 

Requirements for a $10,000 Personal Loan

The main requirement that a borrower will face with a $10,000 personal loan is verification of income. Hard money and cash lenders will require an individual or business to prove they have they have the money to pay off the loan.

Most personal loan lenders won’t ask for a credit check. Instead they will ask for verification of income in the form of bank statements or business records. Business cash lenders may demand to see sales receipts and accounts receivable as verification of income.

Some lenders known as private equity lenders will make a $10,000 personal loan if collateral is provided. The collateral will have to worth considerably more than $10,000 because the amount of equity has to exceed the amount of the loan. Some equity lenders will take a stake in the business or real estate collateral as equity. Others may take accounts receivable as equity for a loan.

The advantage to equity lenders is that their loans come with lower interest. The disadvantage to equity lenders is that the borrower can loose the collateral if the loan isn’t repaid.

Drawbacks to $10,000 Personal Loan

Borrowers should exhaust other lending possibilities before seeking a $10,000 personal loan. The interest on a $10,000 personal loan can be steep, as much as 10-25%. A borrower may end up paying $1,000 or more in interest in addition to the principal of the loan.

Before getting a $10,000 personal loan a borrower should see if they can get a home equity loan or real estate equity loan. Real estate equity loans can be a better deal because they come with much lower interest rates. Equity loans on property also come with a much longer payback period so they don’t tie up money as long.

Another possible alternative is a loan from a pawnbroker. Many pawnbrokers will give loans on jewelry, vehicles and other items that can exceed $10,000. The disadvantage to a pawn loan is that the borrower will loose the collateral if they can not pay it back.

If a business runs a lot of cash through its bank accounts it should ask about a cash line of credit from the bank. A cash line of credit is an amount of credit the bank extends to cover checks and payments from an account. Many banks will make a cash line of credit available to businesses that run $10,000 or more through their accounts.

Finding a $10,000 Personal Loan

If you do need $10,000 personal loan the best place to look is online. There are lots of online lenders that will make a $10,000 personal loan with income verification. Many equity lenders also offer loans online.

 Some banks may also make cash loans available to businesses with good credit ratings that run a lot of cash through their accounts. Bank loans usually come with lower interest rates than online loans.