A personal loan is one of the best options if you are looking for a collateral-free loan. It can be used for any purpose as there is no end restriction on the usage of funds. Many take the loan for emergency expenses. An alternative to this loan is a small cash loan, which is a short-term borrowing of tenure 1 month to 6 months.
In this type of borrowing, you can take between Rs. 10,000 and Rs. 50,000. A traditional personal loan on the other hand is a longer tenure borrowing between 1 year to 2 years or maximum 5 years. The borrowing amount starts at Rs. 1 lakh.