Personal Loan

A Personal Loan is an unsecured loan that you can use for a variety of purposes, such as debt consolidation, medical emergencies, home repairs or travel. Unlike secured loans, personal loans do not require collateral.

Key features of a personal loan:

• Unsecured loans: No collateral is required.
• Flexible use: Can be used for any purpose.
• Repayment term: Typically ranges from 1 to 5 years.
• Interest rates: Generally higher than secured loans due to the lack of collateral.
• Quick disbursement: Funds are usually disbursed quickly.

Factors affecting eligibility:

• Income: A steady income is essential.
• Credit score: A good credit score increases your chances of approval and lowers interest rates.
• Employment history: A consistent employment history is preferred.

Important considerations:

• Interest rates: Compare interest rates from different lenders.
• Processing fees: Be aware of additional charges.
• Repayment capacity: Make sure you can comfortably repay the loan within the specified period.
• Prepayment charges: Some lenders may charge a fee for prepayment of the loan.