PERSONAL LOANS ARE COMMON ACROSS THE SOCIETY SINCE THE HISTORIC TIMES. THESE CAN BE BROADLY CATEGORIZED AS SECURED AND UNSECURED PERSONAL LOANS. IT IS EASIER FOR EVERYONE TO AVAIL UNSECURED PERSONAL LOANS AS COMPARED TO THE SECURED ONES. THE SUM OF MONEY INVOLVED IN THIS CATEGORY OF TRANSACTIONS IS USUALLY PETITE, RANGING BETWEEN HARDLY A FEW HUNDRED DOLLARS AT THE MOST. IN ORDER TO AVAIL THE TYPE OF FACILITY, A BORROWER, USUALLY, DOES NOT NEED TO PUT UP ANY ASSET AS COLLATERAL. AS SUCH, THE INDIVIDUAL'S CREDIT SCORE IS HARDLY TAKEN INTO ACCOUNT WHILE PROVIDING THE FACILITY. HOWEVER, IN SOME INSTANCES, LENDERS CHARGE HIGHER INTEREST RATES TO BORROWERS WITH DISMAL CREDIT SCORES, ON AVAILING UNSECURED PERSONAL LOANS.
