A personal loan is a type of financing.?
1 answer(s)
Yeah, that's spot on. A personal loan is definitely a type of financing.
Think of it like this: financing just means getting money for something you want to buy. With a personal loan, a bank gives you a lump sum of cash. You then pay it back over time, usually in monthly bits. Of course, you have to pay interest on top.
People use them to finance all sorts of things. It could be a new car, doing up the kitchen, or paying for a wedding. So yes, it's a very common way to get finance for bigger costs.