Moreover, personal loans are based solely on the personal credit of the borrower
. No doubt, the personal loans in the US and UK are called signature loan as they are paid back on the personal credit and signatures. High risks involved in personal loans show that whereas the borrower enjoys maximum benefit from personal loans, such a loan is difficult to get back. As the lender does not have any security or collateral; he is helpless in the situation; nothing can be done upon a situation when the person fails to pay back the loan.