Definition
An unsecured loan that you can use for a variety of personal expenses, typically with fixed repayment terms and interest rates.
What to consider
- Shop around to get the best rates and terms available.
- Ensure the monthly payment fits your budget comfortably.
- Review the total cost, including fees and interest, before committing.
Real world scenarios
- When unexpected medical bills piled up, Ben applied for a personal loan to cover the costs without draining his emergency fund.
Related terms
Related Playbooks
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