Personal Loan

A Personal Loan is a type of unsecured loan offered by banks, credit unions, and online lenders that allows borrowers to access funds for personal use without pledging any collateral. The loan amount, interest rate, and repayment tenure depend on factors such as the borrower’s credit score, income, employment history, and repayment capacity.

Personal loans are typically used for various purposes like paying off existing debts, covering medical emergencies, funding weddings, education, vacations, or home improvements. Since they are unsecured, interest rates are generally higher than secured loans.

Borrowers repay the loan through fixed monthly installments (EMIs) over a set period, typically ranging from 12 to 60 months. Timely repayments can help improve credit scores, while defaults may negatively affect credit history.