A personal loan can be secured against something of value, such as a vehicle or home, allowing the lender to seize your asset to recover its losses if you don’t repay the loan. and at the same time a personal loan can be unsecured loan also that means no property or asset can be kept as colleteral most people opt for this loan as it doest not contain asset or property related loan
How personal loan different from other loans?
We have many points why many people choose personal loan?
1) Most lenders accept online applications for personal loans and you can often get approved for a car loan on the spot at the car dealership.
2) Interest rates have set up payment installments like 2 months 4 months 6months etc etc
3)NO property colleteral required
4)Interests high and principal amount is also limited all these are very much attracted to opt for this kind of loans
For Instance consider with car
A car loan is secured against the vehicle you intend to purchase, which means the vehicle serves as collateral for the loan,that means a propert here in this case car is set for colleteral and If you default on your repayments, the lender can seize an individual car. The loan is paid off in fixed installments throughout the loan. Much like a mortgage, the lender retains ownership over the asset until you make the final payment.