What is Personal Loan?

[Adrian Nichola]

A personal loan is a loan from a bank or investment company or loan company that is used for personal use. Personal loans may be unprotected, installment loans that may be used to finance essential expenses or consolidate debts.

The Receivers of a personal loans in many cases are charged a large amount, in advance, fee called “origination fee” in exchange for the capacity to pay back over a period of time - normally more than 12 months.

Payday loans vs Installment Personal Loans

Normally, payday loans are for a short period than personal loans, and it have a high interest rate, and in many cases are paid back in a single, huge sum repayment (usually on the next paycheck).

On the other hand, an installment loan is paid back over the course of several months and repayments are evenly spread out more than the term of the loan.

 

[Deleted member 28127]

Most of the banks prevent accord personal loans due to various reasons they want to allocate money if you will invest in something, not fiat money that you will consume it as I know.

 

[loansjagat]

A personal loan is a loan which is availed by an individual for overcoming the personal financial needs, where some common usages for personal loans could be a medical emergency, wedding, higher education, buying a gadget or a much-needed vacation. It can be availed by following types of people:

1. Salaried Professionals (Salary getting credited to Bank Account)
2. Self Employed Professionals like Doctors, Architects, CA etc
3. Self Employed Non-Professionals who runs a Business (Like Trader, Manufacturer etc)

The purpose of the personal Loan can be used for any unplanned / emergency purposes like Wedding, Vacation, Medical Emergency, education of the child, etc.

 

[peterradcliffe]

A personal loan is a type of unsecured loan and helps you meet your current financial needs. 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. [h=2]6 things you should know about personal loans[/h] 1. How personal loans work
[h=2]2. Types of personal loans[/h] [h=2]3. Where you can get a personal loan[/h] [h=2]4. Personal loans vs. other lending options[/h] [h=2]5. Impact on your credit scores[/h] [h=2]6. Interest rates and other fees[/h]

 

[alvina clair]

A personal loan is a short-term unsecured loan availed by individuals from banks and other financial institutions. A Personal loan can be an excellent option for Individuals looking for ways to fund various expenses.
You can use the money borrowed for various purposes without any preconditions like funding a big ticket purchase, fulfill family obligations, pay off medical bills, pursue education or fund a vacation.

 

[Mellorando]

Personally I think, A personal loan is a loan that does not require collateral or security and is offered with minimal documentation. You can use the funds from this loan for any legitimate financial need. Like any other loan, you must repay it accordance to the agreed terms with the bank. Personal loans are a form of installment credit. Unlike a credit card, a personal loan delivers a one-time payment of cash to borrowers. Then, borrowers pay back that amount plus interest in regular, monthly installments over the lifetime of the loan, known as its term. You are free to use the funds you get from a personal loan any way you wish – fund a holiday, buy a gadget, pay for medical treatment, use on home renovation, spend on a wedding, finance your children’s education, etc.A personal loan works pretty much the same way as most loans. You apply for a loan, submit the documents, the bank checks your credit worthiness and makes a loan offer. If you accept it, the funds are transferred to your bank account, and you can use them any way you like.