LOUISVILLE, Ky., Feb. 21, 2014 /PRNewswire-iReach/ -- In an unmistakable move, lenders worldwide have slashed their interest rates on short term personal loans. A welcome change from a borrower's perspective, the lending market has warmed up to the idea of lower interest rates and lending activity has risen to record highs during the past eighteen months.
The Guardian reports that lowest interest rates have tumbled from around 6% to just around 4.5% over the past eighteen months. Similar trends have been witnessed around the world, including United States of America (USA), where lenders are literally competing in a cut-throat race to reach the largest audience possible.
Furthermore, lending activity has accelerated at such a fast pace, lenders are pursuing borrowers that would have been considered "high risk" just a few years back -- and they are not shy about it. Borrowers, too, are keen not to default again after having gone through a tumultuous phase involving extensive debt collection activity and even lawsuits. Having faced the music once, these individuals are serious about rebuilding their credit histories and view every loan approval as an opportunity to move up the credit ladder.
Arman, who had the opportunity to tide side by side with the boom in lending activity finds the phenomenon to be very encouraging. "I am surprised that my personal loan rate is nearly as low as my mortgage rate and considering the dynamics between the two types of loans, I am very surprised. I used my borrowing activity at lower rates to transfer high rate balances, consolidate debts, and create an 'emergency cushion' for emergency expenses. At rates so low, I don't see any reason to refuse the chance," explains Arman, 30, who is currently working at a law firm.
There are several reasons why lenders are cutting interest rates. First, the demand has reduced dramatically since the 2008 Financial Crisis. Second, there are just so many borrowers who are now recovering from their financial struggles. They need a fresh start and want short term loan terms to be lower, despite their credit standing.
"I didn't become a credit disaster until the financial turmoil in 2008. I lost all my investments and saw my monthly expenses soar dramatically. Yet, I did not want to pay for a higher interest rate for a short term personal loan," adds Arman.
"Apparently, borrowers have been waiting for this resurgence in lending markets for a very long time. They know they can pay the loan back and are not afraid to take their chances," explains Lisa Stinson, founder of http://www.personal-loan.com/, a site that helps individual and business borrowers qualify, and apply for a short term personal loan.
Personal-Loan.com is a free website where multiple lenders gather to offer competitively-priced loans to a wide range of individuals and businesses. To receive a free quote or to understand the various programs visit Personal-Loan.com today.
Media Contact: Lisa Stinson, Personal-Loan.com inc, (872) 222-9076, email@example.com
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SOURCE Personal-Loan.com inc