Are you willing to take immediate funds? Are you struggling hard with high debt ratio? You can easily overcome with all these problems with the help of personal loan. A personal loan is the form of debt usually given to the people for fulfilling their personal needs. Various banks provide personal finance in the name of various schemes like ICICI Personal Loan and many more. Personal finance is an easiest form of finance to avail money in every kind of emergency.Personal debt can be taken for short term and long term needs depending upon the requirement of the person. Hence personal finance is categorized into two forms secured loan and unsecured loan.
1. Secured Personal Finance: In this form of finance, an individual does not need to pledge any property to the lender as security. These loans are available at low interest rates. If you fail to make repayment on time the banks can take possession over the asset you provided. The banks can sell your property for any purposed, hence it is advisable to make all the monthly payments on time.
2. Unsecured Personal Finance: An individual can avail this loan option without any collateral requirement. These loans are a good option for people who do not have any property to place to acquire the loan.This loan is available at high Personal Loan Interest Rates unlike secured loans. Because banks do not have ay security that they can use in case of any default.
Advantages of Unsecured Personal Loan over Secured personal loan:
Unsecured personal loan can be availed without any hard requirement of any property like car, home and any plot. Thus this loan option is much advantageous for people who are in the urgent need of money and do not want to offer any asset to the functional institution. These loans are easily available within 48-72 hours. On the contrary note, secured loans can be easily get only by providing valuable to the asset to the bank. Though these loans are available at low interest rates unlike unsecured debt but these loans takes very long time to get disbursed. However if you fail to pay EMI’s on time then your property can be used by the bank for auction or can sell it to another party to recover the money in the risk involved.
Hence both the loan options have their advantages and disadvantages. If a person who wants to avail loan within a week then unsecured finance is the best option .A secured loan is the best option if you have any property to be pledged and want to avail debt at low interest rates.
Therefore people must look for the good alternative according to their requirement and budget.
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