The Plantation State is the smallest state in all of America and while it is not highly populated, it is one of the most densely populated states in the country.
The state residents’ financial position is largely in line with the national average as Rhode Island has its median household income level at $58,703. This level is marginally higher than the national median household income level at $55,775.
The state of Rhode Island has strong demand for personal loans as its residents seek debt for meeting their expenses. This is mainly due to the high unemployment rate prevalent in the state. Nearly 6 percent of the state residents are unemployed, fueling the demand for easy to obtain debt. The following are the main reasons behind the state residents opting for personal loans.
Personal Loans for Household Expenses
While the overall income level in the state is robust, the state still grapples with high poverty rate. Nearly 13.9 percent of the state population is struck by poverty. The state also has a large proportion of its households relying upon food stamps. In 2015, 16.2 percent Rhode Island households used food stamps for meeting their household expenses.
In such cases, personal loans may help a household in Rhode Island through difficult times. These loans are easy to obtain and have convenient repayment options. Furthermore, personal loans do not have any caveat with regard to their use. This means that a borrower is free to use the proceeds whichever way they please. Consequently, personal loans may be used for paying utilities or for making mortgage payments.
However, personal loans should be used responsibly for such purposes as these loans are generally more expensive than other debts.
Personal Loans for Business Purpose
The Ocean State has a high unemployment rate, which suggests that the state struggles with paucity of job options. In such cases, the residents may need to run their own businesses for the purpose of making their ends meet. However, setting up a business requires substantial investment. Such expenses may be met with the help of a personal loan.
Personal loans may be used for providing initial capital to a new business. However, business incurs running expenses as well. The proceeds from personal loans may be used for these purposes as well.
However, the borrower should keep in mind that personal loans generally have high-interest rates. Therefore, they should make the judicious use of the proceeds and should endeavor to repay the loan in quickest possible manner.
Best Banks for Personal Loans in Rhode Island
Get great deals on personal loans in the state with these banks:
People’s Credit Union
For both customers and employees, People’s Credit Union never disappoints as it helps people, as well as the community, enhance the quality of life through financial products and services.
Headquartered in Providence, Rhode Island, BankRI has proved itself to be a great option for both businesses and individuals through its range of banking products.
Founded in 1855, Bank 5 has been around for a long time and is currently serving both Massachusetts and Rhode Island, dedicated to helping you reach your financial goals.
Through its partnership with LendingClub, it is able to reach more people and help them avail of competitive rates on personal loans amounting to as much as $40,000.
Rhode Island Credit Union
With rates as low as 6.65 percent, personal loans from Rhode Island Credit Union is definitely very enticing. The minimum amount you can borrow is $1,000for a 12-month term and is higher for longer terms.
Pawtucket Credit Union
Pawtucket Credit Union offers a series of personal loan options including CD secured, shared, unsecured, and line of credit with different rates and payment terms.
Christine has a solid background in personal finance as she spent the last eight years working at one of the biggest banks in the US. She managed her own team of financial advisors that helped hundreds of people with their financing needs. Her innate understanding of different financial products and loans helped her move up the ranks quickly after graduating with a degree in Business Administration.