Loans

What is personal loan?

What is a Loan

To define the term loan we need know one thing loan is given by other members like financial institutions or government recongnised banks or any other financial intermediateries where one has to pledge to pay back with installment basis with bank generated interests

What is Personal loan?

Personal loan in general words we can say that nothing but a customer not having any security to get his loan except his repayable capacity
So personal loans have high interest rates and low principle loan amount
That makes a personal loan more like a credit card, where you don’t have to put up collateral either. But compared to using the plastic in your pocket, the interest rate for a personal loan may be slightly lower, and you may be able to borrow a bigger sum, because you’re agreeing to pay back a fixed amount of what you owe on a regular basis

How to clearly explain what is personal loan

For instance if we took a car loan,then your car will be collateral for that loan for suppose i a customer didn’t pay his installment he as to pay his emi or he have to give back his car back to bank or any financial institute
So absolutely we can say that it is unsecured loan

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