A personal loan is nothing but credit facility offered by a bank or nonbanking financial company (NBFC) to a person, based entirely on his/her creditworthiness. Hence, the lender doesn’t ask for any security or collateral to extend this type of loan facility to that individual. In other words, it’s an unsecured loan. What really sets personal loan apart from other loan types is that you don’t need to use the available funds for some specific purpose, unlike as in case of a home loan.
You can take a personal loan to meet any type of immediate financial requirement such as to meet household expenses, home renovation, to fund a vacation or to pay for wedding expenses. The banks and financial institutions of India offer various types of personal loans, with many of them even customizing such offers depending upon the specific needs of the applicants. However, as they are unsecured in nature, the interest rates charged on personal loans are usually higher compared to other loan products like education loan, home loan etc.
Most lenders offer personal loans ranging from ₹10,000 to as high as ₹40 lakh and even higher in some cases. Here on this page, we will acquaint you with all the popular personal loan types you can avail from lending establishments in India, and provide you with more details related to each one of them.