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    Maneet Anand

    A personal loan is usually an unsecured loan from a bank, hence it is usually offered at higher rates of interest compared to other loans. However, if you take a personal loan from friends or family (more like a favor) then may be it will be without any interest for you, depending on your agreement with the lender.

    But, for organized lenders such as banks and financial institutions, lending is a business, hence it is given at an interest. The rate of interest is directly proportional to the risk undertaken by the bank in lending you; the higher the risk, the higher the rate of interest.

    In case of credit cards, you may be able to spend interest free until you miss a payment. So, to an extent a credit card is interest free personal loan for a short while (that is from month to month)

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