A personal loan is a type of loan that is typically unsecured, meaning that it does not require any collateral such as a house or car to be put up as security. Personal loans can be used for a variety of purposes, such as consolidating debt, paying for home repairs or renovations, covering medical expenses, or funding a major purchase.

People often use personal loans to consolidate high-interest debts, such as credit card balances, into a single payment with a potentially lower interest rate. They are also popular for funding home improvement projects, such as remodeling a kitchen or repairing a roof, as well as covering unexpected medical expenses or emergencies. Additionally, personal loans can be used for planned expenses, such as weddings, vacations, or purchasing high-value items.