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A personal loan is a loan that is provided with little to no documentation and without the need for security or collateral. The money from this loan can be put to any sane financial use. You must pay it back according to the terms set forth by the bank, just like any other loan. Typically, this can be paid in equivalent monthly instalments over a few months to a few years.
You are free to utilize the money you receive from a personal loan any way you see fit - to pay for a vacation, purchase a gadget, cover medical expenses, renovate your home, finance a wedding, fund your kids' education, etc. The majority of loans function similarly to personal loans. You apply for a loan, and the bank verifies your creditworthiness and then extends an offer to you. The money is deposited to your bank account when you accept it, where you can use it however you like.
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