Personal Loan

A personal loan is a type of unsecured credit that does not require collateral or security. Banks, NBFCs (Non-Banking Financial Companies), and digital lenders offer personal loans primarily based on the borrower’s income, credit history, and repayment capacity. These loans are versatile and can be used for any personal financial need, including but not limited to weddings, medical emergencies, travel, education, or home improvement.

The loan amount typically ranges from a few thousand to several lakhs, with tenures from 12 to 60 months. Interest rates vary depending on the applicant’s credit profile and lending institution's policy. Since these loans are unsecured, the interest rates are usually higher than secured loans like home or auto loans.

Personal loans are often approved quickly, especially with digital applications, and funds can be disbursed within 24 to 72 hours, making them a popular choice for urgent financial needs.