New Delhi, Feb. 24 -- Personal loans remain a popular tool for Indians to get money in a hurry for a variety of purposes, from medical emergencies to renovating homes. With several banks and financial institutions fighting with one another, it is necessary for an individual to be aware of the prevailing situation of interest rates and terms of lending to secure the best deal.

Personal loans are unsecured, i.e., not secured against collateral, hence available to a wide range of borrowers. This means that such loans are distributed without any collateral from the borrower.

Further, banks and NBFCs consider the credit score, income, and existing debt-to-income ratio to determine the rate of interest. A good credit score (over 750) and spot...