Personal loans are usually for amounts between £1,000 and £25,000 and are generally unsecured. This means that none of your own property or possessions are immediately at risk, although lenders may be entitled to take legal action if you default on repayments.
Interest rates may be fixed or variable and will probably cover a wide range depending on the particular details of the loan. There may be other costs involved with very low-interest deals, so it's often a good idea to check the small print before signing a contract.
If repayments become a struggle, lenders may be able to help. Most companies encourage borrowers to get in touch as soon as possible if problems do arise.
