A personal loan is a loan provided by a financial institution based on the borrower's credit rating and ability to make repayments. The loan amount, interest rate, and repayment period depend on the individual's credit profile as well as the type of loan product offered. Borrowers are usually required to submit proof of identity, income statements, and other supporting documents. Loans will be issued after the application is evaluated and approved by the financial institution.
Business loans are funds provided by financial institutions to help businesses develop, expand operations, or solve capital shortage problems. Business loans usually set the amount, interest rate, and term of the loan based on the company's credit status, asset value, and repayment ability.
A secured loan is a loan applied for by a borrower to a financial institution using an asset as collateral. If the borrower fails to repay the loan on time, the lender has the right to dispose of the collateral. Secured loans usually have a lower interest rate because the lender owns collateral as protection against risk. The loan amount as well as the repayment period depends on the value of the collateral and the borrower's credit profile.