A personal loan is a loan taken out for a short period of time, usually between two and five years. The length of time is fixed and does not fluctuate, unlike a credit card or line of credit. Most personal loan amounts are between $1,000 and $100,000, depending on your need and creditworthiness. Each bank has its own set of limitations on how much and how long you can borrow for a personal loan.
Personal loans are typically unsecured, which means there is no collateral, such as a car or house backing the loan. Different types of lenders offer personal loans, including traditional brick-and-mortar banks and online-only lenders. They serve borrowers with varying credit scores, income and other qualifying requirements.
This guide explains how you can evaluate online lenders for personal loans. It offers guidance for finding the right lender for your credit history and income, interest rates offered, how