A personal loan is a type of unsecured credit that individuals can use for various personal needs such as medical expenses, travel, education, or home renovation. It doesn't require collateral and is typically approved based on income, credit score, and repayment capacity. The loan amount is disbursed as a lump sum and repaid in fixed monthly installments over a set tenure. Interest rates and terms vary by lender, making it important to compare options before applying.
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