Personal loans are loans granted for personal use. Personal loans can be used for family, education, medical, vacation or household financing purposes. Individuals also acquire such loans for their businesses too. Personal loans can either be secured or unsecured. Secured means you provide an asset as security. Unsecured loans, also called signature loans are advanced based on the borrower's credit-history and ability to repay the loan from personal income. Repayment is usually through fixed amount installments over a fixed term.
Required documents by financial institutions
- Contact details
- Copy of ID/ passport.
- Proof of income – latest 3 months certified copies of pay slips.
Benefits and more on personal loans
Personal loans which are also known as consumer loans can be less expensive than business loans. You can apply for a personal loan through Patamkopo to finance your small business
They are a great choice for consumers with limited business history and can be used to build your credit rating as they report to credit bureaus.
It’s reasonable to take a personal loan if one’s business doesn’t have good history or is new and if you have an income and need money for a project.