A personal loan is an all purpose loan provided to customers at pre agreed conditions. The following question and answer session will give you a much clear insight into the concept of a personal loan.

With personal loans gaining popularity, more and more people are attracted towards them wanting to utilize its services to handle their financial turmoil’s. the simplicity and multipurpose utility associated with Personal loans makes them all the more alluring and sought after. But with the increase in popularity there is a subsequent increase in the number of questions and doubts arising in the minds of potential customers who wish to understand the different facets of Personal loans. In an effort to help you Finance-strategy.com has prepared a comprehensive list of frequently asked questions pertaining to personal loans to clear all your doubts and help you draw in maximum benefits by using these personal loans. A clear understanding of the topic can be sought after going through these questions pertaining to Personal Loans.

1. What are personal loans?
   Personal loans are multipurpose loans provided to you to take care of a whole wide gambit of your personal needs for which you might need monetary assistance. Personal loans offer the option of taking the loan with or without a security cover in the form of a secured personal loan and an unsecured personal loan.
2. What is minimum and maximum amount on which a personal loan can be availed?
   A personal loan can be taken by an individual in the range of Rs 15,000 to Rs 10 Lakh.
3. What are the rates of interest applicable for a personal loan?
   The rates of interest on a personal loan vary from lender to lender. Also another factor affecting the rate of interest is the type of personal loan taken by you. in the case of a secured personal loan your loan is backed by a security deposit hence the rate of interest applicable are lower. On the other hand in case of an unsecured personal loan there is no security cover with the lender hence the rate of interest tends to be on the higher side.
4. Who are the lenders operating in the market offering personal loans?
   Most of the banks whether nationalized, private or co operative have the facility of offering loans. Apart from banks there are some non banking financial institutions operating in the market that are capable of offering loans to individuals.
   
5. What segment of the population can avail a personal loan?
   Any individual who is salaried, salaried professional or a salaried non professional can qualify for a personal loan.
6. Why personal loans are also referred to as an All Purpose loan?
   Since Personal loans are designed to cater to an individual’s personal needs which may vary from one person to another thereby encompassing a whole gambit of uses, therefore it is not a wrong statement when a personal loan is referred to as an All purpose loan. The loan is capable of handling any of your requirements including, loan consolidation, house repairing, purchasing/ repairing your car, medical expenses, educational expenses, wedding expenses, holiday payments etc.
7. Is it possible for me to club my income with that of my spouse’s when I approach for a personal loan?
   Yes, it is very much possible to for you to club yours as well as your spouse’s income together and in effect boost your eligibility when approaching for a personal loan.
8. What are the methods of repaying back the loan?
   Repayment of your personal loan is carried out by means of fixed monthly installments. The amount to be paid back by you every month is fixed by you and the lender and the payment is carried out subsequently.