Personal Loan

Banks and Financial Institutes are offering Personal Loans to people. They are so much aggressively market this type of loans that consumers can’t stop their temptation to take this type of loans.

Definition: Personal Loan or a Signature Loan or an Unsecured Loan -

Personal Loan is also known as a Signature Loan or an Unsecured Loan.

- Wikipedia: A Personal Loan is an unsecured loan is a loan that is not backed by collateral. Also known as a signature loan or personal loan.

Unsecured loans are based solely upon the borrower's credit rating. As a result, they are often much more difficult to get than a secured loan.

- Investopedia:

- a loan that establishes consumer credit that is granted for personal use; usually unsecured and based on the borrower's integrity and ability to pay.

- An unsecured loan is a loan that is not backed by collateral. Also known as a signature loan or personal loan.

- loan that is based on your income, debt and credit history.

- A personal loan is a loan from a lender that is not secured by any property.

Explanation: -

A Personal Loan is not backed by any collateral. And that’s why it is sometimes difficult to get. The Personal Loan is absolutely based on Borrower’s Credit History.

Lenders don’t ask for any Collateral for this loans and that’s why this type of loans come with higher interest rates than the Asset backed loans.

Finance Gurus Say that, This is a Bad type of Loan. Because it charges higher interest rates. According to them, people take this type of loans to fund their personal needs such as marriage shopping….etc….. So they advise that, rather than taking this types of loans, you should plan your expenses very early in your life means Now…. Rather than running for personal loans at the time of expense, you should plan and build the budget for that expense several years back.