Personal Loan as the name suggests is taken for any personal individual use such as a dream vacation, fairy-tale wedding, medical emergency or any other personal requirement. A personal loan mostly does not require any collateral or security with lowest formalities. The loan is backed with individual’s credit score and promise to pay rather than any pledged assets.
Personal loans are unsecured loan given to the borrower without requiring to disclose any specific reason for the loan. Considering various criteria’s such as income, nature of employment, years of work experience, scope of repayment etc. the Annual Percentage Rate (APR) is decided.