About Personal Loans

What is a personal loan?

Personal loans, also referred to as unsecured loans are loans you can spend on whatever you want. The bank does not demand any collateral on assets like real estate or cars. Consequently personal loans are subject to higher risk for the bank, and therefore the interest rates for personal loans are also higher than mortgages and car loans. However there are different requirements for a person applying for personal loans, as the bank wants to minimize the risk of losing money.