What is the definition of personal loan?

by augustus.ziemann , in category: Personal Finance , a year ago

What is the definition of personal loan?

Facebook Twitter LinkedIn Telegram Whatsapp

1 answer

by vincenzo.murazik , 10 months ago


A personal loan is a type of loan provided by financial institutions or lenders to individuals for personal use. It is typically an unsecured loan, meaning it doesn't require collateral such as a house or a car. Personal loans can be used for various purposes like consolidating debt, home improvement, education, medical expenses, or any other personal need. The borrower receives a lump sum amount from the lender and then repays it through fixed monthly installments over a specified period, usually with interest. The interest rates and terms of a personal loan can vary depending on the lender and the borrower's creditworthiness.