A personal loan is a sum of money lent to you by a financial institution such as a bank, or building society for an agreed period of time .
A personal loan is normally repaid in regular monthly instalments. On top of the amount you borrow, your repayments will include interest and administration costs. The time period over which you repay the loan will vary between 3 and 25 years depending on the type of loan you have agreed, how much you borrowed, and how much you can comfortably afford to repay each month. For example, you would probably pay a loan of £3,000 back in 3 years, but a larger sum like £50,000 would usually be taken out over 15 years or more.
Personal loans can be either unsecured or secured against your property. Of course, you'll have to be a homeowner to qualify for a secured loan and all larger loans will normally be secured.
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