Pros and Cons of Personal Loans

Personal loans as a commodity possess the following features which can be classified as benefits and drawbacks of personal loans


  • Possesses flexibility and versatility.
  • Has Lower interest rates and higher borrowing limits.
  • No collateral requirement.
  • Easier to manage as compared to other loans.




  • Fees and penalties can be high.
  • Interest rates can be higher than alternatives.
  • Higher payments than credit cards.
  • Can cause an increase in debt.


All the above-stated features are inherent in every personal loan no matter its use. Modern times have brought about a change,Pros and Cons of Personal Loans Articles personal loan apply online has become a trend in developed cities as well as some developing rural areas.

In India, the banking and finance industry does not operate as in world-leading nations. Our economical structure is referred to as a mixed economy in which the market witnesses an active contribution from public as well as private undertakings.

Some examples of these are:

Public sector banks:-

  • State bank of India
  • Punjab National bank
  • Bank of Baroda
  • Bank of  Maharashtra
  • Oriental Bank of Commerce, etc.

Private sector banks:-

  • HDFC bank
  • ICICI bank
  • Axis bank
  • Kotak Mahindra bank
  • Yes bank, etc.

After the mergers in public sector banks in 2020, The oriental bank personal loan is now the same as that offered by PNB

  • The offered rates to various customers such as Salaried, Self-employed, Pensioners are 9.95% p.a. to 14.50% p.a.
  • Processing Fee Up to1.8% of the loan quantity
  • Loan Tenure Up to eighty-four months
  • Loan Amount Up to Rs.15 lakh