A personal loan refers to money that is borrowed from a financial institution, for personal (not professional or business) use. It is a type of unsecured loan & helps you to fulfill your current financial needs.
In opposition to larger and long-term loans, personal loans are taken into relatively short to medium terms. Generally personal loans are used to pay for one-time or short term expenses where a borrower
(the person who is getting the loan) doesn't normally require disclosing the specific reason for the loan. It can serve as your solution for managing your travel costs and wedding expenses as well as the
expenses of a medical emergency, home renovation, debt consolidation and others. This type of loan is used by many to resolve their current financial needs.
The tenure of a personal loan is generally from one to five years. You don’t usually need to pledge any security or collateral while availing a personal loan and your lender provides you with the flexibility to use the funds as per your need. The bank will check the level of income, employment history, credit score and scope for repayment are those specific criteria etc. Considering these criteria and lender, the APR (Annual Percentage Rate) of personal loan can be decided anywhere between 11.29% to 35%.