Personal Loans, Explained

What is a personal loan?

A personal loan is typically an installment loan repaid through scheduled payments over a defined term. Depending on the product, it may be unsecured or secured by collateral.

Common features

• A stated loan amount
• A fixed or variable interest rate
• A defined repayment term
• Regular scheduled payments
• Possible lender fees or other costs

Common reasons people explore them

Consumers may research personal loans for debt consolidation, major purchases, home-related expenses, emergency costs or other personal needs. Whether a loan is appropriate depends on individual circumstances.

Before applying

Review the total amount borrowed, estimated payment, APR, fees, term length, prepayment rules and the total expected repayment amount. Eligibility and terms vary by lender and borrower profile.