Best Personal Loan

A personal loan is when you borrow a certain amount of money from a lender and pay it back over an agreed period of time, usually with interest added.

Personal loans are commonly used to fund large purchases, like buying a new car, home improvements or paying for a wedding.

You choose how much you want to borrow and agree to repay it over a set period of time with a fixed or variable rate of interest added.

A loan that uses an asset you own as security, like property, is called a secured loan. An example of a secured loan is a mortgage. If the loan is not backed by something of value, it's called an unsecured loan. Personal loans are always unsecured.

Before you apply for a personal loan, it's worth checking your credit score, as it can affect how much you can borrow and the interest rate you'll be offered. When you're looking for a loan, compare lenders to find one that offers an interest rate and repayment period that suits you. Once you apply, you'll need to pass some affordability checks before your application can be accepted.