Personal Loans are basically of two types: secured personal loan and unsecured personal loan.
- For availing secured personal loans you need to offer collateral as security. Borrowers can place either land, home, etc., as collateral.
- Secured Personal Loans are offered at low rate of interest.
- Borrowers always bear the risk of repossession if there arises any default. But, such a situation seldom exists.
- Easy installment facility and longer repayment periods are the advantages associated with this loan.
- Unsecured Personal Loans need no collateral.
- Lenders, in absence of collateral offer loans at comparatively high rate of interest.
- You will be given a short period of time for repayment of loan unlike secured personal loans.
- You can raise only a small amount of loan.
- There is no risk of repossession of the property as no collateral is involved.
- Loan processing and approvals are fast.
So, apply for personal loans. This loan is suitable for all class of people. Even if you have a bad credit record, you can avail this loan.