A personal loan is an unsecured loan provided by banks, credit unions, or online lenders to individuals to meet various personal financial needs. Unlike secured loans (such as home loans or auto loans), personal loans do not require collateral, which means borrowers don't have to pledge any asset (like a house or a car) to secure the loan. Instead, personal loans are approved based on the borrower's creditworthiness, income, and repayment capacity
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