Written by Administrator | 29 June 2010

Normally, a Personal Loan is an unsecured facility which is used for any purpose. Since it is not secured only for a property or vehicle, the lender bases its decision to lend on the basis of the profile of the borrower, his credit history and the current capacity to pay the loan. In case the customer fails to make regular payments or defaults on the agreement, the lender may recover the customer's personal assets.

 

How to End a Personal Loan Agreement

At any time, a customer may end the loan agreement by settling in full the outstanding balance. A rebate on the interest may be given by the lender. But if the agreement is under the Regulation of the Consumer Credit Act, the law lays down the minimum rebate amount.