Unsecured personal loan does not necessitate collateral. It is ideal for those who either do not want to put their property under the risk of repossession or do not possess any property at all to use as collateral. Thus it provides you cash to fulfill your personal needs without putting your property at stake.

Though an unsecured personal loan takes the risk away from you it puts the lender in high risk. So a few lenders may charge a higher rate of interest for this loan. But it is not obligatory that you have to pay high interest only because you do not offer collateral. Some other factors are there which affects the rate of interest. Your present financial stability, credit score and the amount you want to borrow play important role in deciding the rate of interest.

An Unsecured Personal Loan can be taken and used for a number of reasons. You can use it for a variety of personal needs except your day-to-day expenditure. It can be used for any of the following purpose: