Personal loans are unsecured loans provided by financial institutions that allow individuals to borrow a fixed amount of money for various purposes, such as debt consolidation, home improvement, or emergencies. They involve fixed interest rates and repayment schedules over a predetermined period, usually ranging from 1 to 7 years. Eligibility depends on factors like credit history, income, and other financial aspects, with no need for collateral. Borrowers receive the loan amount as a lump sum and repay it in regular installments, with interest, until the loan term ends.