 |
Financial Search... Simplified |
A Personal Loan is an
unsecured loan in which borrowers do not need to have any guarantee or security
to secure the repayment of the loan. It can be a family function, a house
renovation, buying jewellery or going for a vacation trip. Person can easily
get a loan from different banks or financial institutions. Person can take a
loan at the time of their financial needs.
People require economic
help for various purposes. Everyone cannot have enough money to meet expenses
from their own pocket. Loans have become part of today’s consumption. In India,
personal loans have
gained popularity among the people as they can have easy access to desirable
money as per their requirements. Person must check their credit history, before
applying for personal loans. Person having decent credit score get the loan at
the lowest interest rates. Person having poor credit score get the loan at the
highest interest rates. Person can also do detailed research on different
lenders and choose the best lenders among them.
Personal loans are
short term loans. The loan provided for personal use known as personal loan.
Expenses can be of any type like education, air conditioner, repairs and other
consumable goods.
Person can repay the
loan with easy EMI. EMI is the amount to pay each month to the Bank or any
other financial institution until the amount of the loan gets totally repaid.
The loan repayment period varies up to 60 months.
Types of Personal
Loans:
Personal loans categorized
into two types:
1. Secured Personal Loan
2. Unsecured Personal Loan
Secured Personal Loan
Secured Loan means it
is secured against something person own in the form of assets. If a person fails
to repay the loan, then the bank will take ownership of that asset and selling
it to other to cover the losses. The assets may be in the form like home, car
or any another high value item. Home mortgages and car loans are examples of
secured loans. The secured loan provides the lowest rate of interest.
If a person wants to take secured loan, first they have search for a lender
online.
Unsecured Personal Loan
An unsecured loan does
not require any security against the loan – the lender only requires promise to
repay the loan. Different lenders have their different criteria for providing
these loans. Rate of interest will be higher than secured loan because banks do not take any security as
collateral.
