PERSONAL LOAN​

A personal loan is taken to meet the basic needs of a person, Be this to pay the personal expenses or to buy a home or a car. One person can get the loan based on his monthly income, and the loan can be secured or unsecured. Loans are also taken for a specific use, like funding education or buying a property or car. A personal loan differs from a personal line of credit. The earlier one is a lumpsum amount, whereas the latter one is need-based. A personal loan can be secured or unsecured.

Most of the personal loans are paid through EMI, i.e. in monthly instalments; for this, one should be aware of the actual cost of the loan, i.e. annual percentage rate. While taking personal loans, one should take care of interest rate, the collateral given for personal loans, upfront/processing fees charged, prepayment penalty and repayment terms.

Personal loans are taken mainly for home loans, against property, against used cars and unsecured loans.