A personal loan is a kind of unsecured loan which can be used for any purpose that the borrower deems necessary. The loan backed only by promise to repay, and for this reason the personal loan also called

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Transfer loan
B	Signature loans
C	Priority sector loan
D	Secured loans

Explanation:

Detailed explanation-1: -Student loans, personal loans and credit cards are all example of unsecured loans. Since there’s no collateral, financial institutions give out unsecured loans based in large part on your credit score and history of repaying past debts.

Detailed explanation-2: -An Unsecured Loan is a loan that does not require you to provide any collateral to avail them. It is issued to you by the lender on your creditworthiness as a borrower. And hence, having an excellent credit score is a prerequisite for the approval of an Unsecured Loan.

Detailed explanation-3: -Examples of secured debt include mortgages, auto loans and secured credit cards. Unsecured debt doesn’t require collateral. But missed unsecured debt payments or defaults can still have consequences. Examples of unsecured debt include student loans, personal loans and traditional credit cards.

Detailed explanation-4: -Unsecured loans are loans that don’t require collateral. They’re also referred to as signature loans because a signature is all that’s needed if you meet the lender’s borrowing requirements.

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