What is a Personal Loan?
A personal loan is an amount of money you can borrow to use for a variety of purposes. For instance, you may use a personal loan to consolidate debt, pay for home renovations, or plan a dream wedding. Personal loans can be offered by banks, credit unions, or online lenders. The money you borrow must be repaid over time, typically with interest. Some lenders may also charge fees for personal loans.
A personal loan is a type of unsecured loan provided by financial institutions that individuals can use for various purposes, such as debt consolidation, home improvements, or emergency expenses.
Personal Loans have the following features:
• They are provided without any specific purpose.
• Lenders provide personal loans without requiring collateral or a guarantor.
• It comes at an attractive rate of interest.
• They are relatively short term loans vis a vis other loans(i.e 3 to 5 years)
• The Personal Loan can get disbursed as fast as 24 hrs if the documents are in order.
• Currently, lenders offer personal loans ranging from Rs 50,000 to Rs 50 Lakhs, with repayment tenures typically ranging from 1 to 5 years. Choosing a higher loan amount with a shorter tenure can result in a lower interest amount.