Personal Loan
A personal loan is a type of unsecured loan that individuals can borrow from a bank, credit union, or online lender. Unlike secured loans, such as mortgages or auto loans, personal loans do not require collateral. This means borrowers do not have to put up any assets, such as their home or car, to secure the loan. Instead, lenders grant personal loans based on the borrower’s creditworthiness, which includes factors like credit score, income, and employment history. Personal loans cover unexpected expenses, financing home improvements, paying medical bills, or funding large purchases. These loans are different from other installment loans such as student loan, car loan and mortage loan which covers specific expenses. The flexibility in usage makes personal loans an attractive option for many individuals. Loan amounts and repayment terms also differ, allowing borrowers to find a loan that fits their needs and financial situation.