Also known as character loans, these signature loans can be applied for, up to a maximum limit of $20,000, which can many a time be relaxed to a slightly higher limit, if the need be. The repayment period is usually 60 months, however what comes in really as a breather, is the fact that there is no penalty for pre-closure of loans.
A good credit history is what people granting the loan really look at. If you are in a position to demonstrate remarkable management skills and produce equivalent profits, then filing and getting a signature loan is even easier.
Well what way do you think the signature loan is better than your usual loan? You don't need to stand in long queues and answer bugging questions the manager asks, you need not pledge your house papers for it, and it is not even necessary to produce your bank statement (though having a respectable balance would impress the banker to move papers in your favor). Moreover, you need not worry as to how much you would lose pre-closing your loan either.
But, the only problem with the signature loans is that you cannot rely on buying your entire home and infrastructure with it. You also can't produce this as a proof to serve any other purpose. The most important disadvantage of signature loan would however be that you need to repay it at any cost even if you run into financial trouble. This is because there is no collateral backing in this case. So, even if the lender does not ask a reason why you avail it, it only advisable to avail it with a purpose, rather than for luxurious purposes.
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