Personal loans are a way to use tomorrow’s income today, and unlike
other loan products such as to buy a house or pay for an education, the
process involved is simple.
In fact, if you already have an account with a bank, you would have come across many offers for a personal loan. While these are easy to get, and offer almost instant gratification, you must note that the interest rates are much higher than, say, for a car loan. This is because personal loans are unsecured loans. This means that the loan is not backed by any asset; you don’t have to put up any asset like property or gold to be able to get the loan.
However, the loan amount on offer and its interest rate depend on a few parameters such as your income, credit, repayment capacity, and others.
In fact, if you already have an account with a bank, you would have come across many offers for a personal loan. While these are easy to get, and offer almost instant gratification, you must note that the interest rates are much higher than, say, for a car loan. This is because personal loans are unsecured loans. This means that the loan is not backed by any asset; you don’t have to put up any asset like property or gold to be able to get the loan.
However, the loan amount on offer and its interest rate depend on a few parameters such as your income, credit, repayment capacity, and others.
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