|
Usually people have two options by opting for a secured loan or an unsecured loan. But, there are many people who do not have any asset like home or a vehicle to pledge as collateral. There are also many people who have property but do not want to risk against a loan. So, for such people a personal loan can be the best option to opt for. This loan offers finance to the people for meeting various personal requirements of life. Moreover, it is an unsecured loan that does not require any asset to pledge as collateral. The loan is availed without providing any security. It can be used for different purposes such as paying for medical emergencies, purchasing a vehicle or a new home, planning a vacation with the family, paying college fees and so on. One can find many banks and firms that offer unsecured loan to the people. The person is free to approach any bank or a firm to apply for a personal loan. Following are some banks and institutions that provide personal loan to the people: 1. HDFC 2. SBI 3. PNB 4. Citibank 5. Fullerton 6. IDBI Bank 7. Muthoot Finance There are many others finance companies too that offer this loan. The person can get the list of available lenders on the internet. One should check and compare the various deals before applying for the loan. There are various factors that a person should consider while availing this loan. These are the rate of interest, processing fee, application fee, tenure of the loan, hidden charges, eligibility, documentation, customer feedback, reputation in the market and so on. Considering all these factors will help the person to get the best deal in the market. The personal loan is an unsecured loan, so the lender has nothing to authenticate in case of non-repayment of a loan. Therefore, there is no risk involved in this loan. Due to the absence of collateral, the lender charges high rate of interest to the people. If the applicant fails to pay the loan in the particular period, then the lender may have to face some legal issues. Personal Loan is a loan term loan and the person have enough time to repay the loan. The tenure of the loan ranges from five to ten years. The loan term loan has low monthly payments, and high rate of interest whereas a short term has higher monthly payments with low interest rates. The person should choose the term according to the capability to pay the monthly installments. Conclusion: Personal Loan is the simple and safe loan that offers money to the people for personal use. The loan is offered to people without demanding any security.
Related Articles -
personal loan, unsecured loan,
|
