PERSONAL LOAN Meaning and
Definition
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A personal loan is a financial product offered by banks, credit unions, and other lending institutions that provides individuals with a fixed amount of money to be repaid over a predetermined period of time. It is an unsecured loan, meaning it is not backed by collateral such as a home or car, making it a popular choice for those who may not have assets to pledge or do not wish to risk their assets.
Personal loans can be used for a variety of purposes, including debt consolidation, home improvements, medical expenses, education costs, or even for a dream vacation. The loan amount and interest rate are typically determined based on the borrower's creditworthiness, income, and repayment history.
Interest rates on personal loans can be fixed or variable, with fixed rates remaining constant throughout the loan term, allowing borrowers to plan their monthly budgets accordingly. The repayment period for personal loans may range from a few months to several years, depending on the loan amount and terms.
Borrowers typically make monthly payments towards the loan, which consist of both principal and interest. These payments can be made through automatic deductions from the borrower's bank account or by check, and failure to make timely payments may result in penalties and damage to the borrower's credit score.
Before applying for a personal loan, potential borrowers should compare interest rates, repayment terms, and any associated fees to ensure they are getting the most favorable terms possible.
Common Misspellings for PERSONAL LOAN
- oersonal loan
- lersonal loan
- -ersonal loan
- 0ersonal loan
- pwrsonal loan
- psrsonal loan
- pdrsonal loan
- prrsonal loan
- p4rsonal loan
- p3rsonal loan
- peesonal loan
- pedsonal loan
- pefsonal loan
- petsonal loan
- pe5sonal loan
- pe4sonal loan
- peraonal loan
- perzonal loan
- perxonal loan
Etymology of PERSONAL LOAN
The word "personal loan" is a combination of two terms: "personal" and "loan".
1. Personal: The word "personal" originated from the Latin word "personalis", which means "pertaining to a person". It eventually evolved into Old French as "personel" and later entered Middle English as "personel" or "personall". It refers to something relating to an individual or their private affairs.
2. Loan: The word "loan" originated from the Old Norse word "lǫn", which means "something lent" or "to lend". It entered Middle English as "loan" or "lone" around the 13th century. A loan refers to the act of borrowing money or something of value that is expected to be repaid.
Similar spelling words for PERSONAL LOAN
- persona grata,
- personal letter,
- personality,
- personal foul,
- personal memory,
- person of color,
- personable,
- personal effects,
- personal appeal,
- personal care,
- personal income,
- personalized,
- personableness,
- personation,
- personalty,
- personal estate,
- personal matters,
- personal chattel,
- personal manner,
- personalised,
- personal check,
- Personal Cheque,
- personal expense,
- personal pronoun,
- personally,
- personnel pouch,
- personalise,
- personalize.
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