A Personal Loan is an unsecured loan that can help you meet your current financial needs. The loan does not require you to pledge any security or collateral and is available with minimum documentation. The lump sum from the personal loan can be used to fulfil expenses, such as home renovations, marriage expenses, medical emergencies, funeral costs, etc. You can also use a Personal Loan to consolidate different debts or ease a liquidity crunch.
Unlike a credit card, a Personal Loan gives you a lump sum amount to use at once. You pay back the amount plus interest in pre-agreed monthly instalments over the loan tenure. Most people prefer personal loans as an alternative to credit cards because often Personal Loans have lower interest rates than credit cards.