A personal Loan is an advanced unsecured loan based on your credit history and ability to re-paid the same out of your income. It is also known as a consumer loan. It is a multi-purpose loan that can be borrowed to meet your immediate needs.
Personal loans help households cope with any difficulties they face in buying a house or a vehicle, in higher education for children, or even in medical emergencies, among other aspects.Unlike a home loan or a car loan, no personal loan against any properties is covered.
Since it is unsecured and the lender does not put up collateral like gold or land to make use of it, the lender can not sell something that you own in case of a default. Because of the greater risk when sanctioning them, interest rates on personal loans are higher than those on the house, automobile, or gold loans.
It can be used for any personal financial need and will not be regulated by the bank. It can be used to renovate your home, spending on marriage, a family vacation, education for your child, buying the latest electronic gadgets or home appliances, meeting unexpected medical expenses, or any other emergencies.