Personal loans can be useful when you want to borrow a relatively large amount and would like more time to pay it back. For example, a personal loan can help you:
When you take out a personal loan, the money is deposited into your bank account as a lump sum, which you pay back each month over a set period – usually between 3 and 10 years.
While secured loans, like mortgages, are fixed to an asset – typically the home itself – personal loans are not, which is why they’re also known as unsecured loans.
There are 2 main loan types:
In some cases, you can make overpayments or repay the loan in full before the end of the agreement without penalty. If this is something you'll want to do, check there are no early repayment charges on any loans you look at.
Explore: How to manage your loan repayments
See what the monthly repayments could be on your loan without affecting your credit score.
