A personal loan is a loan that you can take from a bank without needing to provide collateral. You can use the money for a variety of purposes, including debt consolidation, home improvement, or unexpected expenses.
How does a personal loan work?
Apply for a loan
Submit documents
The bank checks your credit history, income, and other factors
The bank offers you a loan
If you accept the offer, the funds are transferred to your account
You repay the loan in fixed installments over a specified period
What are the benefits of a personal loan?
You can borrow more money than you might be able to with a credit card
Interest rates are usually lower than credit card rates
You can use the money for a variety of purposes
What are the drawbacks of a personal loan?
Personal loans can be expensive compared to other types of debt
Late or missed repayments can negatively impact your credit score
You can apply for a personal loan online or offline.