Personal loans work very much the same as any other type of loan. You borrow a certain amount of money from a bank or lender so that you can pay for the things you need to. You will have an agreement with the lender to pay back your loan in monthly, fortnightly or weekly repayments.
Be aware that it is almost impossible these days to get a personal loan unless you have an excellent credit rating. The reason is that it is "unsecured", meaning that if you fail to pay it off there's nothing of yours they can grab.
In comparison, auto loans are relatively easy to get, because if you fail to make payments on time they can repossess the car.
Most banks only give personal loans to their best customers--people who really don't need the money anyway.
For example you ask a personal loan from a bank. They will either issue you a check or give you cash. You get some time to earn the gold and pay it back to the bank.
Hello
You decide how much you want to borrow and over how long you want to pay it back. Some will say Maximum 1 year, Most 5 years. They will work out what the monthly payments will be and you pay that every month. They will either tell you how much and ask you if you can afford that. Bigger amounts and they may ask about income out outgoings to help work out if you can afford it.
Andy C
You get a check.
