Personal loan is a kind of credit offered by the financial institutions for the customer’s personal use. It is a type of the unsecured loan and it doesn’t require asset as collateral as guarantor or security to avail them. The unsecured loans are also known as the signature loans. They are issued on the basis of the customer’s credit history and their ability to repay the loan from their income. Repayment is usually collected as fixed amount installments over a fixed term as in the terms of the personal loan. Borrower who has good credit score will get the loan with lower interest rates. This personal loan is also called as consumer loan.