Posted on January 23, 2020 at 15:42 PM
A personal loan is money borrowed from a bank, credit union or online lender that you pay back in fixed monthly payments, or installments, typically over two to seven years. Lender rates can range from 6% to 36% APR.
Personal loans are a type of installment loan. That means you borrow a fixed amount of money and pay it back with interest in monthly installments over the life of the loan — which typically ranges from 12 to 84 months. Once you’ve paid your loan in full, your account is closed. If you need more money, you have to apply for a new loan.