A personal loan usually refers to money an individual borrows from a lender, usually without having to use a property as a collateral to secure the loan.

 

However, some personal loan lenders may require collateral. Personal loans are instalment loans, which means borrowers receive a lump sum of money when they take out a personal loan and then repay it in equal monthly instalments until the balance is gone at the end of the loan’s term.

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Some of the most popular reasons to get a personal loan are consolidating or refinancing existing debts. A personal loan is a type of loan that is issued by banks and financial institutions. It is the perfect solution when you need extra funds to finance personal expenses like your home renovations, holidays, education costs, business, medical bills, or anything else.

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Personal loans give you the financial flexibility to use the funds as per your convenience and needs. As its name suggest, a personal loan is a type of unsecured loan and helps to meet your current financial needs.