Personal loans

Personal loans are the loans that are the loans that are provided by the banks for some personal reasons which need not to be disclosed to the bank by the applicant while taking this loan. The applicant can use this loan for any what reason that he likes without any tension. The reason can be anything from the marriage of his children to for buying a home appliance to giving down payment of the vehicle he wants to buy to anything in the world. This loan is readily provided by the banks as this is a profitable type of loan for them as it involves high interest rates and a comparatively lower time period of repayment.

Personal loans are normally unsecured in India. Mostly all the major banks provide unsecured personal loans. Secured personal loans are not a common phenomenon in India. An unsecured personal loan is the one which is provided without any security or collateral. A security or collateral is the asset you pledge to the bank in lieu of the loan so that in case you are unable to repay the loan than the bank can use that asset to recover their loan amount. For an unsecured personal loan, the most important factor is the applicant’s credit history which is checked by the banks by referring the CIBIL, which is the credit history keepers in India. Personal loans can prove to be a very handy thing for applicant in case they need money very fast and urgently as this loan can approved within hours sometimes.


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