A personal loan is an unsecured loan. It is offered based on important criteria such as income, credit history, employment history, ability to repay etc. A personal loan is termed as an unsecured loan as it isn’t secured against any asset. Hence personal loan interest rates are higher as compared to home or car loans.

Personal loans have become tremendously popular over the years. The entire unsecured loan category which includes personal loans as well as credit card loans, grew by more than 30% in the fourth quarter of 2018.  Usually, people apply personal loan for buying gadgets, travel, medical emergencies etc. Thanks to personal loans one doesn’t need to redeem one’s investments.

Personal loan is popular because:

• Minimal documentation
• Simple procedure and Quick approval
• Regular income is enough to avail the loan
• It can be applied multiple times depending on previous repayments
• EMI repayment option
• The borrower can use it for any purpose
• It can be availed for the consolidation of debts

Personal loans charge interest rates beginning from 10% onward.

Additional Read: Reasons Why You Should Apply for a Personal Loan Online