Personal loan
An unsecured installment loan that can be used for almost any personal purpose. The most flexible mainstream U.S. consumer-loan product.
Full definition
A personal loan is an unsecured installment loan that can be used for almost any personal purpose: consolidating debt, financing a major purchase, covering medical bills, paying for a wedding, or bridging a short-term cash gap. U.S. personal-loan amounts typically range from $1,000 to $50,000, with terms of 12 to 72 months and APRs from about 6% to 35.99%.
- Written by
- Get Advance Loan Editorial Team
- Reviewed by
- Compliance Review
- Published
- January 15, 2026
- Last reviewed
- May 22, 2026
- Unsecured loanA loan that doesn't require collateral. The lender relies on your credit and income to underwrite. Most personal loans are unsecured.
- Secured loanA loan backed by collateral the lender can seize on default. Auto loans, mortgages, and HELOCs are secured. APRs are lower than for unsecured loans.
- HELOC (Home Equity Line of Credit)A revolving line of credit secured by your home equity. APRs are typically lower than personal loans, but the home is collateral.
- Credit unionA member-owned, not-for-profit financial cooperative. Often offers lower personal-loan APRs than banks for the same credit profile.
- Online lenderA lender that originates and services loans entirely online. Decisions in minutes; funding as fast as the next business day.
- Marketplace lenderA platform that matches borrowers with multiple lenders from a single application, so you can compare offers without applying separately.
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