What is a personal loan?

What is a personal loan?

A personal loan is a type of unsecured loan and helps you meet your current financial needs. You don’t usually need to pledge any security or collateral while availing a personal loan and your lender provides you with the flexibility to use the funds as per your need. It can serve as your solution for managing your travel costs and wedding expenses as well as the expenses of a medical emergency, home renovation, debt consolidation, and others. Open-end and closed-end loans, unsecured and secured loans, student loans, mortgage loans, payday loans

Learn about your personal loan eligibility, use the Personal Loan EMI Calculator and apply for a personal loan in just four easy steps

Secured vs. Unsecured

Loans can either be secured or unsecured.

 Unsecured loans are not attached to assets, meaning lenders cannot put a lien on an asset to recoup financial losses in the event that a debtor defaults on a loan. Applications for unsecured loans are instead approved or rejected according to a borrower's income, credit history, and credit score.

Secured loans sometimes known as collateral loans are connected to assets and include mortgages and auto loans. In these loans, a borrower places an asset up as collateral in exchange for cash. Though secured loans usually offer larger amounts of money to borrowers, at lower rates of interest, they are relatively safer investments for lenders. Depending on the nature of the loan agreement

What are the types of personal loans?

Personal loans can be used for a wide variety of purposes. Check out the following types of personal loans:

● Wedding loan- Wedding loan very important because at the wedding there is a lot of money spent on them. Indian weddings can turn out to be quite expensive. Instead of draining all your savings, opt for a marriage loan. This personal loan helps you fund all your wedding-related expenses with ease.

● Home Renovation loan- Home Renovation loan to give new look to the home people spend a lot of money. Give your house a new look with a home renovation loan. This personal loan helps you handle the costs of maintenance works, refurbishing, redecoration, and more.

● Travel loan- Many families planning for trip and vacations in summer.  You can fund expensive family trips and vacations abroad with a personal loan for travel.

● Medical loan- In case of an urgent medical expenditure, if you do not have insurance, apply for a medical emergency loan. With instant approval and low personal loan interest rates, this loan can be of great help.

● Debt consolidation loan- You can take a personal loan to consolidate all your existing debts into a single one and manage your installment payments in a better way. Use a personal loan EMI calculator to calculate and compare your repayments.

● Higher education loan- A personal loan for higher education helps you finance other aspects of studying abroad like accommodation, travel, living expenses as well as tuition fees.

● Small personal loan- The urgent need of money can occur at any point in time. Be it in a business or for your child’s education, if you need some additional funds you can choose a small personal loan.

Loan	Mortgage
Relationship between lender and borrower. A lender is also called a creditor and the borrower is a debtor. Money lent and received in this transaction is known as a loan: the creditor has "loaned out" money, while the borrower has "taken out" a loan.	Mortgages are secured loans that are specifically tied to real estate property, such as land or a house. The property is owned by the borrower in exchange for money that is paid in installments over time.