The idea of personal loans can be traced back to the 1700s. It was during this time that the phrase ‘living beyond one’s means’ was coined. This phrase today is synonymous with “going into debt” and is often seen in colloquial phrases like ‘getting into debt or borrowing money for daily expenses.

Personal loans are a good way to consolidate your debts, tackle those unexpected expenses or maybe just finally get that big purchase you’ve been waiting for.

In the simplest terms, a personal loan is a type of unsecured loan that provides funds to borrowers for specified purposes. It enables borrowers to borrow money and repay it with interest over an agreed period of time.

The better your credit score, the higher the credit limit will be on your personal loan. If you have a high credit score, you will have more flexibility in choosing what interest rate you want for your loan.

A personal loan is a type of unsecured loan that people can get based on their income and credit history. Personal loans are often used as an emergency fund or to replace other forms of disposable income like disability benefits or unemployment insurance.

The process is like that of applying for any other kind of loan. The initial step is filling out the application form available on the bank’s website or at their office. One has to provide their name, address, phone number, employment status and annual income among other details about themselves. Lender will run a credit check and take paystubs, current and previous W2 forms, address proof ..etc before approving the loan.