A personal loan is generally a fixed-term installment loan. If approved, the borrower receives loan proceeds and then repays the balance over scheduled monthly payments.
Most installment loans include a loan amount, a term, an annual percentage rate (APR), and a required monthly payment. The monthly payment is designed to repay both principal and finance charges over time.
Borrowers may use personal loans for expenses such as debt consolidation, home projects, major purchases, or unexpected costs. Exact loan terms depend on approval, verification, and applicable law.