Personal loans are one of the most preferred types of loans. As the name signifies, these loans are completely your own and are not limited to provide you funds for a specific reason, that is, you can use a personal loan for several purposes. Renovating your home, funding your childs education, holidaying, purchasing a car, planning a wedding...no matter what the reason is, personal loans are there for you and you do not have to necessarily mention the reason to your lender of availing a personal loan.

The biggest advantage of personal loans is that they are of two types, unsecured and secured. While secured loans are limited to homeowners only, unsecured loans facilitate both tenants and homeowners. This way keeping in mind your circumstance, personal loans cater to all.

Secured personal loans are those in which you have to pledge collateral to the lender. The collateral may be your house and it works as a security to the lender that if you fail to repay the loan, the lender may sell your house to retrieve his loss. However secured loans are risky, but they have lower interest rates and flexible terms. The repayment duration is also long and convenient.

Unsecured personal loans are safe. They dont require any collateral, thus involve less paperwork and are quicker to process. But they have high rates of interest, not so flexible terms and are difficult to get. The loan repayment duration is short, which makes your monthly instalments higher.

Thus, it is recommended that first you should survey the market to get complete information regarding interest rates on offer, and then be very careful while choosing a loan.