Basically, there are two types of loan one is secured loan and other is an unsecured loan. In a secured loan, the borrower had to put down any collateral to secure the amount of loan. It mean the borrower have to collateral some expensive product against the amount of loan. So if he will not return the loan then they can sell that thing to recover their loan.
In unsecured loan borrower do not have to put something as collateral but what they do, they prepare a contract and have the sign of borrower on it. This contract had all the term and conditions which will apply on this loan amount and if the borrower will not fulfill those requirements they can take legal action against him.
Basically, the personal loan is an unsecured loan it is a form of loan in which cash will be provided to the borrower without putting any condition that where he can use it. This means you can use your loan amount where ever you want to use it, unlike mortgage which has the term that you can use it only to buy a home. The term which makes this loan easy to get that you do not have to put anything as collateral to get this loan.
When you get loan from some family member or colleague for the sake of buying a house, it is called as private mortgage. Here you get the benefit that they people personally know you. But keep this thing in mind that even if you are getting mortgage from someone you know, it doesn't mean that there is no agreement involved.
A personal loan is only provided to those people who had the good credit history they will not provide loan to such borrowers who had bad credit and no financial stability. But you can get private mortgage anytime. If you take a personal loan from the bank and return it with full responsibility it will increase your credit point and make new possibilities for you in the future. There are some other organizations as well who will provide personal loan other than banks which will provide you the option to compare personal loans term and conditions.
Sometimes these companies provide personal loan on more better, easier and flexible options than banks. So if you are planning to get a personal loan, do compare its term and conditions with other competitors. You don't have to go somewhere to compare these term and conditions. Also compare these terms with what you are getting for private mortgage. Technology creates ease for the human being in every field of life and the same role it plays here. If you want to compare your personal loan just go online and search for different companies personal loan options. It will provide you a clear picture of their policies and terms. So now it's up to you from which company you want to take a loan.