How do Personal Loans work?

A personal loan is often referred to as an ‘unsecured personal loan’ because you can use the money to then pay for whatever you personally need it for. You’ll need a good credit score and credit history to get an unsecured loan. You can ask to borrow a large sum of money and the loan lender doesn’t have the security of a high value item to guarantee that the money they lend you will be repaid. Which makes it ‘unsecured’ for the lender.

What are Personal Loan interest rates?

The interest rate is variable interest because it’s related with INTERBANK rate which change frequently so the interest rate for your loan is (Interbank Rate + Fixed Margin) and the margin is secured in the bank’s contract with the client.

You’ll find that the monthly interest rate you pay on your ‘Unsecured’ Personal Loan monthly repayments will be higher than on a ‘Secured’ Loan. It can also change at a certain time of the year because it will be on a variable rate.

Why a Personal Loan might work for you?

Quick access to your loan money

Your loan will usually be paid into your account within days of your application being approved – and sometimes even immediately. You can make your purchase or pay your debts quickly

Rebuild your credit score

A personal loan can help to rebuild your credit score and credit history if you meet your monthly repayments

Types of Personal Loans

Personal loan against salary transfer
  • This kind of loan must be with salary transfer and the person must work with a listed company.
  • If a man and his wife work in a listed company, they can merge their salaries and get a bigger amount to match their needs.
  • The loan tenor for this type can be up to 10 years according to some banks policies
Personal Loan for self-employed and Professionals
  • This kind of loan given to the people who don’t have a salary but their income can be measured according to their bank statement. So they must have a bank statement to be studied.
  • The loan tenor for this type is usually not more than 4 years according to some banks policies.