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With personal loans, funding is distributed in a lump-sum payment.
When you receive your loan, you’ll receive the entire amount at once and begin paying it back in monthly installments. Student loans and mortgages are other examples of installment debt.
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A personal loan is defined as money loaned to individual borrowers by banks, credit unions, or private lenders. Personal loans are paid out in a single lump sum, and often repaid over a number of years.
Personal loans can be used to meet a number of different expenses.