A personal loan is basically a short-term loan, whose repayment period is shorter compared with a mortgage. Whereas mortgage requires a time-span of 10, 20 or 30 years, a personal loan usually goes for about one to five years in repayment period. This service is basically provided by banks at a cost, known as interest rate on the debt itself.
Personal loan enables an individual to fulfill their personal desires and other necessities, be it paying for a car, travelling, renovating homes, covering current medical expenses and the list goes on. It is a type of debt which is neither a business loan nor a long-term home loan.
Personal loan could also be used in such a way that allows an individual to cover current debts, whereby it is used to combine several other loans into one. This is what we call debt consolidation. Individuals who take out a debt consolidation loan basically consolidate all their high-interest rate debts and combine it into a single, lower interest rate loan.
In short, a personal loan is basically a loan that provides financial relief in the form of cash advance to borrowers.
It is usually hassle-free as it does not involve a complicated process, has simpler requirements and last but not least, faster approval.
Looking for a hassle-free personal loan? Check out iMoney’s personal loan comparison table for the best rates!