What is a personal loan?

Answer

A:

A personal loan is a type of unsecured loan that individuals borrow from banks, NBFCs, or lenders for personal use. Unlike home or car loans, personal loans don’t require collateral or security.

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Key Features:

• Unsecured Loan: No need to pledge any asset.

• Flexible Use: Can be used for various purposes like medical expenses, weddings, travel, debt consolidation, or education.

• Fixed Tenure: Usually repaid in monthly installments (EMIs) over 1 to 5 years.

• Interest Rates: Generally higher than secured loans because of increased risk to the lender.

• Quick Disbursal: Many lenders offer fast processing, often within a few days.

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When to Use a Personal Loan?

• Emergency expenses like medical bills

• Funding a large purchase or event

• Consolidating high-interest debts

• Home renovations or travel plans

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If you want expert guidance on applying for a personal loan or understanding which option suits you best, contact:

Visit: www.legals365.com
Call: +91 9625961599

Advocate B.K. Singh and the team are here to help!

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