Quiz 1. Personal Loans

Which of the following couldn't you get a personal loan to pay for?

• Car

• House

• Holiday

• Boat

If a personal loan is secured you have to put up an asset for the provider to use if you don't pay your loan

• True

• False

Personal Loans have higher interest rates than credit cards

• True

• False

A variable interest rate will remain the same over the entire loan

• True

• False

If I take a loan over 5 years and pay it out in 2 I will still have to pay the full amount of interest for the whole 5 years of the loan

• True

• False

A fixed interest rate will vary over the life of the loan

• True

• False

An unsecured loan means the bank holds nothing of yours as assurance against the loan to ensure you pay it back

• True

• False

Secured personal loans usually have lower interest rates than unsecured personal loans

• True

• False

If you pay out a personal loan early the bank or lender may charge you an early termination fee

• True

• False

If you don't repay your unsecured personal loan, the lender will take the item they have secured and sell it to recover the money you owe them

• True

• False