A personal loan is a loan of money that a bank makes a person who must return within a specified period and with a certain amount of interest which is agreed before signing the contract. This interest can be variable or fixed (See Also Consumer Credit).

Personal loan are often used for travel, change of car, buying appliances, home decor or to finance college education for children.

The elements of a personal Loan are:

Term: is the maximum time in which to pay the personal loan. Time is stipulated in conciliation between the lender and the customer. The minimum time is 6 months and maximum of eight years, depending on the amount of money you borrow.

Interests: are the price paid for the loan, this depends on the risk profile that has the operation. There are also two types of interests which are fixed and variable.

Bonds: are people who serve as guarantors in case the owner defaults on credit. In better words, are people who would face on loan if the holder does not cancel.

Fees: Some fees are applicable to which lenders to pay the costs inherent in the operation. What fees are associated with the feasibility study, processing of documents, verification of assets and guarantees, etc.

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