A personal loan is a type of financial borrowing that individuals can use to cover various personal expenses. These loans are typically unsecured, meaning they don’t require collateral (like a car or house) to back the loan. Personal loans are versatile and can be used for many purposes, such as consolidating debt, covering medical expenses, paying for home improvements, or funding large purchases.

A personal loan can be a good option for borrowing money when you need funds quickly and without collateral. However, it’s essential to carefully consider the terms, interest rates, and your ability to repay before applying for one. If used responsibly, a personal loan can be a helpful financial tool, but if mismanaged, it could lead to further debt.