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