Must choose the one that suits your particular financial situation and needs
Money can be borrowed to be used for various purposes ranging from starting a new business to buying your dream house. There are different types of loans out there, which of them is best and for which purpose?
Following are the common types of loans:
Personal Loans
Personal loans are offered by banks and financial institutions and the money can be used for anything from buying a new cellphone to paying your bills or anything else for that matter. This way of borrowing money is comparatively expensive because the loan is said to be unsecured because the borrower doesn’t put up any collateral that can be seized in case of a default or a problem which is not the case of a car loan or a home mortgage. A personal loan amount can range anywhere between few thousands to few lacs, the repayment period is normally shorter and range from 6 months to about 5 years.
Before you can apply for a personal loan, you have to show a proof of income using your income verification along with proof of assets worth at least as much as the amount being borrowed.
