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 A personal loan is a debt agreement between an individual and a financial institution such as a bank. A secured personal loan for something like a home is spread over a longer period of time and has a lower interest rate. An unsecured personal loan is classified as a high-risk debt and so has a higher rate of interest and the repayment period is a shorter period of time http://www.superpages.com/supertips/what-is-a-personal-loan.html.
Personal loans also appear under different names such as repayment plan with a car company when you buy a car. The agreement is then with the car company rather than a bank.
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