A beginners guide to Personal Loans

A loan for your personal use that must be paid off over a set period of time. This can be secured by an asset that you have agreed to put up as security or unsecured meaning you have borrowed money based solely on your credit history and ability to repay i.e. earnings. As a general rule a personal loan is for a smaller amount and shorter duration than a home loan.


What are the different types of personal loans?

Secured Personal Loan


This is a loan that is secured against an asset, typically a car, boat, or even a savings account. If you fail to repay your loan, the lender can seize the asset and sell it to get their money back.


Unsecured Personal Loan


This is a loan where there is no security against the borrowing, hence the lender is providing the loan based on your credit worthiness.