Personal loans are a popular way to consolidate debt, pay off high-interest credit cards, and make other large purchases. A personal loan is a form of unsecured debt offered by banks and other lending institutions to individuals who need money for large purchases or emergencies.
These loans are often called signature loans because the borrower must sign for them. A personal loan can be used for many purposes, such as paying off credit card debt or making home improvements.
A personal loan is usually available for a short period of two to five years.