A personal loan is a kind of obligation or debt that is generally made for family or domestic purposes. It is not meant for business, or for long duration mortgage use. The financer lends money to the borrower, and the borrower needs to return the full amount to the lender, but not necessarily on a regular basis. It is an interest-based debenture loan. It could be both a secured https://slickcashloan.com as well as an unsecured loan. If it is a secured loan, the lender asks for collateral, whereas in the case of an unsecured loan, there is no demand for any guarantors or added assets.
However, though lenders may not require guarantors, a few banks do ask for them, along with collateral in the form of added assets. So, apparently, there is no standard form of rules. Variations are inevitable in case of terms and conditions as well as the eligibility criteria, depending on the fundamental principles of lenders. You need to scrutinize these in advance to avoid future complications.
Purpose of a Personal Loan
This loan can be used for any purpose, without any supervision over its ultimate use. Usually, personal loans are used for high priced incidentals like tuition fees related to school or college, furniture, television sets, washing machines, cars, bikes and the like. Or, to fulfill urgent financial needs, be it a grand function in the family or a vacation and so forth. Such loans enable you to take care of a variety of expenses like travel, medical, marriage, honeymoon and so on.