Fast loan malaysia rmplus: A personal loan is a type of unsecured loan offered by financial institutions such as banks, credit unions, or online lenders to individuals for various personal purposes. Unlike secured loans (like a mortgage or auto loan) which are backed by collateral, personal loans do not require any specific asset to be pledged as security. As mentioned, a personal loan is unsecured, meaning it doesn't require collateral. The lender evaluates your creditworthiness based on factors like your credit score, income, employment history, and financial stability. Personal loans can be used for a wide range of purposes, such as debt consolidation, home improvement, medical expenses, wedding expenses, travel, or any other personal financial need. When you apply for a personal loan, you specify the amount you need. Once approved, you receive a lump sum of money which you repay in fixed monthly installments over a specified period of time.