New Delhi, July 3 -- When you want to borrow money from a bank for a personal purpose, you can choose from various credit products. These include a personal loan, line of credit, credit card, etc. In this article, we will discuss what is a personal loan and line of credit, their differences, and which one you should choose.

A personal loan is a financial product offered by a bank wherein the borrower gets a specified amount in lumpsum. It must be repaid within a specified tenure through equated monthly instalments (EMIs). The personal loan amount can be used for any purpose without disclosing it to the bank. The amount must be used for any legitimate purpose as allowed by law.

Some common purposes for which borrowers use the personal lo...