A personal loan also known as Consumer Loan and can
be used for a specific personal need. A personal
loan can be used for your existing debts, vacations,
school tuition, home improvements and car repair
etc. The Personal Loan can be borrowed from a bank
or from private lender.
Unsecured loans
are loans made to individuals which do not require
any form of collateral since the credit quality and
financial position of the individual is sufficient
for the lender to extend credit without collateral.
Most lenders limit the size of the unsecured loans
to less than $80,000 without special credit approval
The
approval of unsecured personal loans is based on
your credit history or employment status.
The
amount of personal loan depend upon the purpose for
which the loan is required. The amount of personal
loan is repayable over a period of from six months
to ten years.
Lenders
charge interest rates on the amount borrowed as
personal loan. Their rates can either be fixed or
variable. If the interest rate is variable, the rate
changes with market forces and could change the
amount of your monthly installment.
Fixed
rates offer more certainty but can be at a higher
rate. It is advisable to compare the Comparison
Rate of different lenders. |