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For those who are not adept at sources of information, be assured that the banks in your local area are not the only sources into which you can tap for a low interest personal loan. Although this may have been the case in the past, the Internet has opened the way to sources of information that were not available ten or fifteen years ago. In fact, the information that is available on the World Wide Web is so easily accessible that businesses have switched from mainframe computer networks to the Internet for all of their information sharing needs.Banks and savings and loansThe first place one thinks about when needing a low interest loan is a bank or savings and loan. Whether this is force of habit or just a misconception is unclear. However, in today?s financial market, these financial institutions may not hold the monopoly on the lowest interest rates as they once did. With so much competition in the financial market in the 21st century, the potential borrower needs to research the market and not stop at the very first place that comes to mind.Credit unionsQuite often offering the lowest interest rates, credit unions are frequently the last place many people consider for a low interest personal loan. The reason is unclear, but it may be because many people don?t feel they qualify for membership in a credit union. Many today are opening membership to many different groups, allowing more people the opportunity to put their money where it will earn interest on both checking and savings accounts as well as offering many different kinds of loans including personal loans, mortgages, and car loans.Retirement funds and savings accountsDepending where you live, you may have a retirement fund that allows you to borrow funds that are already vested (known in the United States as a 401K). With this kind of loan, or even a loan against your savings account, the interest rate is lower than a bank or credit union. In addition, the interest you pay back, you are paying to yourself and not to a lender. If you have enough money in either of these kinds of accounts, borrowing your own money is the best way to go. Certainly, you can withdraw the money in a savings account; however, if you borrow your own money, you will still earn interest on the entire amount of money rather than just the remaining balance.Finance companiesFor a low interest personal loan, a finance company is not the place to apply. Although exceptions may exist, for the most part, these institutions cater to those who have less than perfect credit, and therefore, their interest rates tend to reflect that. In most cases, the interest rate that a finance company charges is probably in the range of five to ten percent higher than the interest rate of other institutions. For those who are unable to obtain a loan from a bank or credit union, this may suit the situation, but it should definitely be the last place on your list.You may freely reprint this article provided the following author?s biography (including the live URL link) remains intact:John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Writen By : John Mussi

Source: http://bestfinancialarticles.com/16163/potential-sources-for-a-low-interest-personal-loan/

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