A personal loan refers to money that is borrowed from a financial institution, known in these situations as the lender, for personal (as opposed to business) use.
A personal loan is a ‘small expense’ loan that is mostly used by people to finance their day to day emergencies. They come in smaller amounts and therefore, just like most unsecured loans, they are easily approved.
While personal loans are typically used to pay for one-time expenses (such as medical bills, home repairs, or a significant purchase), a borrower (the individual receiving the loan) is usually not required to disclose the specific purpose for the loan.