No collateral with personal loan

A personal loan is a lump sum of money borrowed from a financial institution that can be used for almost any purpose. Learn more about personal loans and how they work.

What is a personal loan?

A personal loan is a loan you qualify for based on your credit history and income.

Personal loans are sometimes called signature loans or unsecured loans because there is typically no collateral required to secure a personal loan.

Collateral is an asset that can be seized and sold to repay the loan. Home loans are secured by the home being financed.

In most cases, lenders approve personal loans by evaluating your creditworthiness.

Personal relato

loans are tively easy apply for and qualify

for when compared to home and auto loans. That makes them useful for everything from small home improvements to expensive purchases. You can use the money for almost anything, but it’s wise to borrow only as much as you need — and only for things that improve your finances or make a significant impact on your life.

How personal loans work

When you get a personal loan, you typically receive your money in a lump sum, and you repay with fixed monthly payments over time. However, the details can vary from lender to lender, and there are a few factors to take into account.