MORTGAGE LOAN SCHEMES
A personal loan is money that you borrow for just about any purpose, including debt consolidation, an unexpected medical bill, a new appliance, a vacation, or even a student loan. You pay the money back—including interest—in monthly installments over time, usually two to five years, Most personal loans are unsecured, meaning that they are not backed by collateral.
The interest you pay is expressed as an annual percentage rate (APR). The average APR on a personal loan is 8.73% as of May 2022, but it can range from 6% to 36% depending on your creditworthiness, including an examination of your income, debts, and credit score.12
You can get a personal loan through a bank, credit union, credit card issuer, or online financial lender. You can normally apply online or in person and will have to provide some basic personal and financial information. Your lender will consider your employment status, income, outstanding debts, and overall credit score to assess whether you are eligible for a loan and determine the interest rate that you will pay.