How to Apply for a Personal Loan

Loans are types of financial instruments that offer individuals or organizations access to capital that can be used for a variety of purposes, usually involving the purchase of assets that generate income.

The loan is agreed upon with the lender and specifies the terms, which may include collateral to secure repayment.

A borrower may agree to repay the loan in either fixed payments, typically monthly installments over a set period of time, or variable payments, which can change depending on certain variables like interest rates.

A lender may be an individual lending funds for personal use, such as mortgage financing or financing to purchase a car; an investment fund; government agency; bank; export credit agency; church fund raiser; political party raising funds from contributors.