Personal loans are in good demand in Ohio as the state’s poverty rate and unemployment rates are relatively higher at 14.8 percent and 4.9 percent respectively. Though The Buckeye State is doing well economically based on many indicators.
The demand for personal loans is fueled by the lower median household income of $51,075, which is nearly 10 percent lower than national median household income. Similarly, the average home value at $136,400 is also substantially lower than the national benchmark which stands at $194,500.
Though this just means it is cheaper to live in this state and the quality of life is stellar compared to California and Massachusetts and so on. Taxes are lower in Ohio than those states for one.
The lower house value means that people have lower home equity which may be tapped for meeting financial exigencies. In such cases, people may need to take out personal loans for meeting various expenses.
Personal Loans for Business
Personal loans may be used for meeting working capital expenses of the business. Since Ohio has higher unemployment rates, it is highly likely that people would require starter loans for initiating their businesses.
As personal loans are amongst the most expensive loans, it is advisable not to take these loans for capital investment purposes as longer tenures attract higher rate of interest, further increasing the repayment amount. However, personal loans may be taken out for meeting day to day expenses, which may be repaid in shorter time period.
Further, the use of personal loans for running businesses should be seriously contained and be restricted to emergency cases only. If you require constant injection of personal loans for running your business then you may consider business restructuring or other long term measures. However, for emergency expenses, personal loans may help you in keeping your business afloat.
Personal Loans for Debt Consolidation
As Ohio is a low income state, the number of people having multiple number of loans are fairly high. For a borrower, it is highly inconvenient to manage multiple loans, especially if such loans have different interest rates, tenure and installment payment dates.
In many cases, they may end up missing installment payment, which ultimately reflects badly on their credit report. Bad credit score generally leads to higher interest rates for future loans. It is recommended to take out personal loan for repaying such multiple loans. The borrower may extinguish several loans by taking one personal loan.
This will help in proper debt management. The borrower may also be able to negotiated better terms and conditions for a personal loan. They can also remove the possibility of default since it is far more convenient to manage just one loan, instead of multiple loans.
Best Banks for Personal Loans in Ohio
Here are the best banks to send your application in for personal loans:
Telhio Credit Union
With fixed rates starting at 8.25 percent for personal loans, Telhio Credit Union is unfortunately only available to residents of certain counties in the state.
Kemba Financial Credit Union
Currently having 33,000 members, Kemba Financial Credit Union has branches in and out of the state. They offer both secured and unsecured personal loans with flexible terms.
Ohio Catholic FCU
Open to all Catholics residing within the boundaries of a diocese, the Ohio Catholic FCU offers unsecured personal loans amounting $2,000 to $15,000 at 10.25 to 10.99 APR.
Ohio Educational Credit Union
Offering flexible payment terms and fixed interest rates, Ohio Education Credit Union provides the opportunity to select the option that works best for you.
Heartland Bank has been serving central Ohio since 1911. While they do not require you to be a member before applying for a loan, you need to maintain an account with them for at least three months.
Canton School Employees Credit Union
Originally serving employees of Canton City schools, they have since opened their membership to non-employees who live in Stark County.
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.