What is a personal loan?

Personal Loan

You can use a personal loan to borrow a specific amount of money and then repay the bank, including interest of course, over a set period. Generally the money borrowed using a personal loan can be used for any legal purpose and they can be used to fund larger purchases, holidays or small renovations.

Personal loans can be secured (will have a lower interest rate) or unsecured and many personal loans allow the borrower to make extra repayments and pay back the loan faster reducing interest costs. Also personal loans is are often cheaper than credit cards and as they have a repayment schedule, encourage people to pay them off.

Personal loans can also be offered with fixed interest rates for those that wish to lock in the price of the loan.

Pros: Can be cheaper than credit cards, discipline of repayment schedule, can use security to lower interest rate
Cons: longer application process

More info and useful questions to ask about personal loans: https://www.canstar.com.au/personal-loans/what-is-a-personal-loan/