Personal loans allow individuals to borrow a fixed amount of money from a lender, which is usually to be repaid in monthly installments over a specified period. Unlike secured loans, personal loans do not require collateral, making them accessible to a wider array of borrowers. Interest rates on personal loans can vary based on the borrower's credit history, income, and the lender's terms. They are often used for consolidating high-interest debts, funding major expenses, or covering emergencies.