Some Loan is offered for specific purposes, like home loan, or car loan.  If you are in urgent need of cash, then the best solution is to go for Personal Loan. Some common reasons why people take up these kinds of loans:

 •          Pay off electricity and medical bills

•           Consolidate Debts

•           Repairing Car

•           Dream Vacation

•           Marriage Preparation

How exactly do this work?  Is it useful when you are paying such a huge amount as interest? Have a look at the different types of Unsecured Finance you can choose from:

 Secured Loan

In this type, the borrower has to pledge the assets to the lender as collateral. The loan value is generally a percentage of the value of security that is a pledge to the lender. If the customers fails to make his monthly installment, the lender has right to retrieve the asset.

Unsecured Loan

This loan is offered to the people who do not have strong financial history. It does not require any security to be submitted to the lender. This type of loan requires minimal documentation and only requirement are that the customer must have a strong monthly salary.

 The rate of interest is calculated by the bank on the basis of your financial record, and the tenure period during which loan has to be paid off is then decided. Based on this factors EMI (Equated Monthly Installment) is calculated.

Various EMI Calculators for Personal Loan are available on Online Portal. Through them, you can easily compare the interest rate. The final value will be calculated using the amount of the loan, interest rates and loan tenure.

Using this calculator it is easier to calculate the total value of the loan. You can easily find out the interest rates to be paid per month according to your need. This will help you to help you to select the best deal and help you to accomplish your needs. It is advisable that, before availing unsecured finance the customer must know all the required information.