What Is a Personal Loan?

submitted 1 year ago by vinjackhanma to business

A personal loan is money borrowed from a lender that you pay back in monthly installments.

A personal loan is money borrowed from a bank, credit union or online lender that you pay back in fixed monthly payments, or installments, typically over two to seven years.

Though it’s usually best to dip into your savings or emergency fund to cover unexpected expenses, personal loans can be a good option for non-discretionary purposes, like debt consolidation.