Loans for 5000 or less in most currencies will be considered a personal loan. Personal loans take second position in the world of banking. Consequently, they are offered at higher interest rates. A better interest rate may be obtained by doing business with the credit union as opposed to even an online source. The local credit union is designed to build relationships with the community, whereas a virtual customer service representative is the closest to human contact a customer will come in online banking.
A personal loan at the credit union is considered different from a car loan. If the money is meant to purchase a used car it is best to reveal the intent to your credit union representative. If the choice is an online bank better interest rates may be quoted if the intent is the same. Defaulting on the loan may result in a judgment being rendered against the borrower.
A judgment remains part of the credit history seven years. After seven years the creditor can reinstate the judgment if not paid. This process can inhibit a borrower from purchasing a home or qualifying for refinancing. With the value of the dollar on a lower scale than the euro today €5000 equates to around $3550. So a person traveling from America to Europe with five thousand dollars is not going to be a happy camper when it comes time to make an exchange and pay the exchange rate. On the other hand an American maintaining an account in Europe, and earning interest in Euros will be pretty happy about their returns.
This type of exchange rate is one of the reasons why doing business on a global scale is so attractive to many businesses. There are other areas where businesses save money doing business globally. Less overhead cost in labor is one, another is the production costs. If a company is saving money in shipment doing business in China while earning profits at its Chinese physical locations, it is financially feasible to be there.
Business loans in the 5000 range is not uncommon. Small businesses are cropping up on a daily basis and many are in need of financial assistance. Banks and small business associations normally require a business owner to contribute a percentage of their own money to qualify for a small business loan. They want to see that the business owner has some level of risk in making the business a success. Some lenders want the borrower to have 25% of their own funds. A good business plan is recommended when seeking small business loans. A business plan will show the lender that you have thought your business pursuits through with proper planning.
Debt consolidation is a good reason to obtain a loan. Consolidation is sometimes necessary when credit cards mount up with high interest rates and multiple annual fees. If the difference lowers monthly output long-term the loan is worth it. Five thousand is a realistic amount to save on your own, but when it is imperative to move things along, sometimes loans for 5000 and under is just necessary.