A personal loan is short to a medium-term unsecured loan granted to an individual. It is commonly used to meet such financial needs as debt consolidation, wedding expenses, unexpected medical costs, home renovation, and others. The flexibility of usage, minimal documentation and quick processing make personal loans a preferred financing option. Unlike other loans, it usually has a shorter repayment tenure ranging from 1 year to 30 years. Depending upon the individual applicant’s profile and lender, the APR (Annual Percentage Rate) of a personal loan may vary from 6.5%.
Personal loans are unsecured loans available for both salaried and self-employed professionals to help meet their general personal or private expenses that are urgent and immediate in nature. Unsecured loans are loans without any security that can be availed quickly. The rate of interest on personal loans is higher than that on secured loans.
• You are in the midst of a financial crisis and need immediate funds. • You do not have time to go through detailed documentation and loan process. • You need a short-term loan of not more than 30 years.