Personal loans are unsecured or secured loans provided by banks, credit unions or online lenders to help individuals cover expenses such as home improvements, medical bills, debt consolidation or unexpected costs; they typically have fixed interest rates and repayment terms, making budgeting straightforward, but borrowers should compare annual percentage rates (APRs), fees, repayment flexibility and any early repayment penalties before committing, as credit history, income and existing debt levels will affect eligibility and the interest rate offered.