Personal Loan

A personal loan is an unsecured loan typically offered by banks, credit unions, or online lenders, allowing individuals to borrow a fixed amount for various purposes. It’s repaid in installments over a set period, usually with a fixed interest rate. Unlike a mortgage, personal loans are not backed by collateral, relying solely on the borrower’s creditworthiness for approval. These loans can be used for diverse needs, such as consolidating debt, covering unexpected expenses, or financing major purchases, offering flexibility in financial planning.