Personal Loan

A personal loan is a type of unsecured loan provided by banks, NBFCs (Non-Banking Financial Companies), or digital lenders, which does not require any collateral or security. It can be used for a wide range of purposes such as medical emergencies, education, home renovation, vacation, wedding expenses, or even to consolidate debt.

The loan amount, interest rate, and tenure are based on the borrower’s credit score, income level, repayment capacity, and employment status. Since no collateral is needed, the interest rates are generally higher than secured loans. Repayment is usually done in monthly EMIs over a fixed loan tenure, typically ranging from 12 to 60 months.