An unsecured installment loan given as a lump-sum payment, repaid in equal monthly payments with a fixed interest rate, not backed by collateral like a house or car.

They can cover various expenses like emergencies, debt consolidation, home improvement, medical costs, credit card payoff, or large purchases, commonly used for consolidating high-interest credit card debt.

Eligibility is determined by credit history, income, other debt obligations, credit score and monthly cash flow. Different lenders have different qualification requirements and thresholds.

No, pre-qualification, usually done via a “soft” credit inquiry, won’t impact your credit score and allows comparison of offers from multiple lenders.

Lenders typically ask for proof of identity, proof of income and employment, and proof of address to verify your identity and income.

A personal loan backed by collateral like a house or car, offered when credit history and income don’t meet unsecured loan requirements, possibly leading to lower rates or larger loan amounts.

Loan amounts typically range between $100 and $5,000, with a maximum of $40,000 and repayment terms between 6 months and 60 months, varying based on credit score and income​.

Prepayment penalties depend on the lender; it’s vital to check if your lender charges a fee for paying off your loan early.

Unsecured personal loans have higher interest rates compared to secured loans like mortgages or auto loans, as they pose a higher risk to the lender due to lack of collateral​.