Why is Personal Loan interest high?

Accepted Answer ✓ Accepted

Personal Loan interest is high because the loan is unsecured and carries higher risk for lenders. Since no asset backs the loan, lenders charge higher interest to cover potential defaults.
4 upvotes

Suggested Answers

No security means more risk for lenders, so they charge more interest.
0 upvotes by Suresh Iyer

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