What is a Personal Loan?
A personal loan is an unsecured loan that can be used for any purpose - home renovation, wedding, travel, debt consolidation, or medical emergencies. Unlike home or car loans, it does not require collateral.
Types of Personal Loans
- Standard Personal Loan: For any personal use
- Debt Consolidation Loan: To combine multiple debts
- Travel Loan: Specifically for travel expenses
- Medical Loan: For medical treatments
Personal Loan Interest Rates
Interest rates typically range from 10% to 24% p.a. depending on your credit score, income, and lender. Banks offer lower rates compared to NBFCs.
How to Get Best Interest Rate
- Maintain credit score above 750
- Compare rates from multiple lenders
- Negotiate with your existing bank
- Consider shorter tenure for lower rates
- Opt for fixed rate if rates are low