A personal loan gives you a lump sum upfront, which you repay in fixed installments — usually monthly — over an agreed term, typically anywhere from a year to several years depending on the provider and amount.
From application to funding
- Application — you share income, employment and credit information, and specify the amount you're seeking.
- Review — the provider evaluates the application against its own criteria.
- Offer — if approved, you receive a specific amount, APR, term and monthly payment to review.
- Funding — once you accept, funds are typically disbursed within a few business days, sometimes faster.
- Repayment — you make fixed payments on the agreed schedule until the loan is paid off.
What shapes the offer you receive
Credit history, income relative to existing debt, the amount requested, and the term all play a role. A stronger credit profile generally — though not always — leads to a lower APR; a longer term generally lowers the monthly payment but can raise the total interest paid.
Secured vs. unsecured
Most personal loans are unsecured, meaning they aren't backed by collateral like a car or house. Some providers offer secured personal loans, where collateral can sometimes lead to a lower rate — but puts that asset at risk if you can't repay. Confirm which type you're being offered.
Ready to check your options?
Explore whether participating providers have an option that fits your situation.