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A personal loan is a type of loan that allows individuals to borrow money for personal use. Unlike loans specifically designed for a particular purpose, such as a mortgage or auto loan, personal loans can be used for a wide range of expenses, including debt consolidation, home improvements, medical bills, wedding expenses, or even a vacation.
Personal loans are typically unsecured, meaning they don't require collateral such as a house or car to secure the loan. Instead, lenders rely on the borrower's creditworthiness, income, and other factors to determine eligibility and loan terms. These loans are often offered by banks, credit unions, or online lenders.
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