King bell
VIP Contributor
A personal loan is a small, unsecured loan that you repay with your own funds. These loans are typically issued by banks to individuals who have decent credit and who wish to borrow money for a short term period of time. Personal loans are classified as unsecured in order to avoid complications if the loan is not repaid in time or if any collateral is pledged.
A personal loan can be used for many different reasons - some examples include: paying off medical bills, purchasing a car or home, funding education expenses, starting a new business venture or starting up an existing one. Personal loans are very flexible and are not limited to a certain amount or purpose.
There are also secured personal loans which require collateral, like a car or home, in order to secure the loan. Secured loans typically have lower interest rates than unsecured personal loans because of their risk factor but may require you to provide collateral on top of your own money. It is important that you understand the terms of your loan before signing anything - do not simply sign everything and land yourself in trouble later on.
Personal loans can be helpful for individuals who find themselves short on funds but who do not wish to pay exorbitant interest rates by putting their credit cards into use.
A personal loan can be used for many different reasons - some examples include: paying off medical bills, purchasing a car or home, funding education expenses, starting a new business venture or starting up an existing one. Personal loans are very flexible and are not limited to a certain amount or purpose.
There are also secured personal loans which require collateral, like a car or home, in order to secure the loan. Secured loans typically have lower interest rates than unsecured personal loans because of their risk factor but may require you to provide collateral on top of your own money. It is important that you understand the terms of your loan before signing anything - do not simply sign everything and land yourself in trouble later on.
Personal loans can be helpful for individuals who find themselves short on funds but who do not wish to pay exorbitant interest rates by putting their credit cards into use.
