What kind of loan is generally borrowed for personal reasons and involves interest repayment?

A personal loan is typically borrowed for individual needs, such as consolidating debt, covering unexpected expenses, or funding a major purchase. Unlike auto loans or business loans, which are specifically tied to purchasing vehicles or financing business operations, personal loans offer flexibility in how the funds can be used. They usually come with a fixed interest rate and a predetermined repayment term, making it easier for borrowers to plan their budget and manage repayments. This type of loan is specifically designed for personal use, which sets it apart from other types of loans that have more specific purposes.