The state of New York is home to New York City, the financial hub of the country. However, New York shows massive disparity in income level across the state. The state’s median household income level stands at $60,850, only $5,000 higher than national median household income level of $55,775.
While the income level is high in the state, the cost of living is equally high, fueling the demand for personal loans. Goods and services including food and housing are significantly more expensive in New York than elsewhere in the country.
The residents of the state are also more financially savvy, which allow them to use debt in a responsible and informed manner. With its high population, the state is an attractive destination for loan providers, offering extensive choice to the borrowers. Following are the main reasons behind the robust demand for personal loans in the state of New York.
Personal Loans for Vacation Home
New York shows significant variations in the income level of its residents. At the higher end of the spectrum, people are interested in luxury items such as vacation homes. However, these assets require a considerable cash separation. Such an outlay may have a negative impact on the liquidity of the purchaser.
Personal loans provide an interesting alternative for financing such purchases. These loans do not have any restrictions with regard to their use, which implies that the borrower may use the proceeds whichever way they want. The lump sum payment required for purchasing such assets may be made using personal loans. These loans may then be paid over a period of time in the form of equated monthly installments.
Further, the use of personal homes for purchasing a vacation home is considered a productive use as the money goes towards the purchase of a valuable asset.
Personal Loans for Meeting Living Expenses
New York has high poverty rate at 15.4 percent. The issues faced by these people are further augmented by the fact that the state has a high cost of living. In such cases, personal loans may be used for meeting various living expenses such as housing rental and school fees.
Apart from high poverty rate, New York also has a high unemployment rate at 5.3 percent. This means that many people face issues meeting their living expenses on account of their layoffs. Such temporary hardships may be bridged through with the use of personal loans for paying off essential living expenses.
However, personal loans are expensive and should be used only as a temporary measure.
Best Banks for Personal Loans in New York
Below are highly-rated banks for personal loans in New York:
Having loans available for both commercial and non-commercial purposes, Alma Bank is conveniently located at the heart of New York City as well.
Bank of the Ozarks
With an easy application process, Bank of the Ozarks makes it as easy as possible for you to acquire the funding you need.
Bank of the West
The Bank of the West is known for its unsecured loans and highly competitive rates. While their minimum credit rating is pretty high, you’re sure to get a great deal once approved.
A transnational company with branches in different continents, Citibank is a popular choice in New York for checking accounts and personal loans.
City National Bank
City National Bank stands out from what it describes as ‘typical lending’ with fully-engaged loan officers, frequent application updates, and quick funding.
First Republic Bank
With flexible loan alternatives, First Republic Bank helps you get the loan product that fits your needs and your current financial state.
Robert is our in-house expert on personal loans and finance. He got an MBA, specializing in Finance, before joining the workforce. After working for multiple Fortune 500 companies in the past decade, he brings a wealth of knowledge and experience to the table.