A personal loan can be used for a variety of things, such as paying school fees or to pay for home renovations. These loans are best suited for people who need instant access to money.
As it is an unsecured loan, the interest rate on a personal loan is generally higher than the interest rate on a secured loan, such as vehicle finance. The loan repayment will be carried out over a set agreed timeframe, with applicable interest and fees included in the installments.
Only get a personal loan if you know you can make the repayments. If you are looking at a personal loan because you are struggling to pay off other debts, then debt consolidation or debt management might be more suitable.