Personal loans do not require any collateral, which means you do not have to pledge any asset as security to get the loan.
Personal loans are unsecured loans:
Personal loan interest rates can vary based on several factors such as your credit score, income, and loan amount.
Your credit score is an important factor that lenders consider when approving your loan application. It is advisable to check your credit score before applying for a personal loan.
Know your credit score:
Before taking a personal loan, it is essential to calculate the Equated Monthly Installment (EMI) to ensure you can afford the repayment.
Personal loans come with various fees and charges such as processing fees, prepayment charges, and late payment fees. Be sure to understand these fees before applying for a loan.
Personal loans have a fixed repayment period, which can range from one to five years.
The loan amount you can get approved for depends on your income, credit score, and repayment capacity.