QUIZ: The difference between personal and credit card loans

Here are ten questions to test your knowledge of personal loans. Take this quiz to understand why individuals should take special care while opting for such loans.

1. Personal loans should be availed ideally only when...

a. You need lump-sum money urgently due to some genuine emergency
b. You want to indulge in luxuries such as buying an expensive car
c. You want to trade in the stock market

Courtesy: Investment-mantra.in

2. Is the repayment track record of your previous loans considered while calculating eligibility for personal loans?

a. Repayment history is not taken into consideration at all
b. Repayment history of previous personal loans only are taken into consideration
c. Repayment history of all your previous loans is taken into consideration

3. Are there any fees and charges payable for a personal loan?

a. Yes
b. No
c. Depends on the lending bank

4. Which of these is an unsecured loan?

a. Home loan
b. Personal loan
c. Car loan

5. Is personal loan a...

a. Short tenure loan
b. Long tenure loan
c. Mid tenure loan

6. Personal loans can be applied jointly. Is it true?

a. Yes
b. No
c. Only in certain cases

7. In what context do personal loans differ from credit card loans?

a. Amount and interest rate
b. Repayment and prepayment
c. All of above

8. Which bank offers 'Jaldi Loan' scheme?

a. Kotak Mahindra Bank
b. State Bank Of India
c. HDFC Bank

9. What factors determine personal loan interest rates?

a. Your income, your company status and individual's negotiating ability
b. Credit and payment history and relationship with the bank you intend to take loan from
c. All of above

10. What is the average personal loan interest rate prevalent currently in the market?

a. Abound 10 per cent
b. Around 5 per cent
c. Around 15 per cent

Summary:

Personal loans are expensive. Make sure you take such loans only when you are in dire need of money and can't do away without availing it. Once taken, make sure you repay it without any default to keep you clear credit history in addition to getting rid of this high interest loan.