Personal Loan is often confused with the Personal lines of credit.
Personal loans can be utilized to fulfill certain personal needs. Buying a home, a vehicle, home repairs, education purpose, medical expenses etc. count under the personal loans.
Such loans can again be borrowed at secured and unsecured conditions. Secured loans are those where the lender asks for collateral that he might claim in case you fail to repay the lent amount. The unsecured loans do not ask for collaterals, but the rate of interest in such case is comparatively higher as the risk of non-payment is higher enough.
Lines
of credit are often extended by banks, financial institutions and other
licensed consumer lenders to creditworthy customers to address liquidity problems;
such a line of credit is often called a personal line of credit. While
a Personal Loan is an amount of money that one borrows from a financial
institution like bank, or from the peers or from a
non-public
lending company for personal use.
Personal loans can be utilized to fulfill certain personal needs. Buying a home, a vehicle, home repairs, education purpose, medical expenses etc. count under the personal loans.
Such loans can again be borrowed at secured and unsecured conditions. Secured loans are those where the lender asks for collateral that he might claim in case you fail to repay the lent amount. The unsecured loans do not ask for collaterals, but the rate of interest in such case is comparatively higher as the risk of non-payment is higher enough.
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