a personal consumer loan could be used to

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Personalloans help the households meet any shortfall they experience in buying a house or a car,in children’s higher education,or even in cases of medical contingencies,among other things. Here’s a low down on personal loans to understand them better. What is a personal loan?

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  • Is a personal loan considered consumer credit?

  • Although any type of personal loan could be labeled consumer credit, the term is more often used to describe unsecured debt that is taken on to buy everyday goods and services. However, consumer debt can also include collateralized consumer loans like mortgage and car loans.

  • What is the purpose of a consumer loan?

  • For qualified borrowers, consumer loans serve a multitude of purposes and are essential in helping them finance their life. Collateral Collateral is an asset or property that an individual or entity offers to a lender as security for a loan.

  • What is a personal loan?

  • Personal loans are a form of installment credit. Unlike a credit card, a personal loan delivers a one-time payment of cash to borrowers. Then, borrowers pay back that amount plus interest in regular, monthly installments over the lifetime of the loan, known as its term.

  • What are the most common uses of personal loans?

  • Common Purposes. Because personal loans can be used for just about anything, there’s no single reason why consumers might seek them. Typically, such loans are an option for purchases or other expenses that are too much to put on a credit card.

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