What are personal loans and how do they work?

What are personal loans and how do they work?

Personal loans are unsecured loans that you can use for various purposes, like consolidating debt or financing a purchase. They typically have fixed interest rates and repayment terms.

What are the eligibility criteria for getting a personal loan?

Eligibility criteria can vary by lender, but generally, you'll need a good credit score, a stable income, and a low debt-to-income ratio.

How can I improve my chances of getting approved?

To improve your chances, you can check your credit report for errors, pay down existing debts, and ensure you have a steady income.

What are the typical interest rates for personal loans?

Interest rates for personal loans usually range from 5% to 36%, depending on your credit score and the lender.

Can I use a personal loan for any purpose?

Yes, personal loans can be used for various purposes, such as home improvements, medical expenses, or even vacations.