Personal Loan is generally a loan that is not secured by any collateral such as an automobile, home or boat. Rates on personal loans tend to be much higher than vehicle or mortgage loans. They also often have a shorter term then secured loans. They are riskier for banks which is why the rates are higher and terms are shorter. If you default on a personal loan, the bank does not have any collateral to recoup. When applying for a personal loan, the bank will run a credit check to ensure you are credit worthy. You may also be required to provide proof of income and residence. In order to apply for a personal loan, visit your local bank and talk to them about the amount, the rates and what your monthly payment will be.

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