Personal loans generally speaking are small loans issued for a brief period of time. The borrower applies for private loan to be employed for his personal purpose. It can be used for vacation expenses, to buy an automobile, to boost home etc. It is burdensome for individuals with a poor credit history to acquire personal loans. Even when issued, the interest rates will undoubtedly be relatively high. The loan amount is paid in installments along side interest. Much like every other loans, secured loans have the benefit of lower interest rates when compared to unsecured loans. In general, personal loans have low interest rates when compared to other types of borrowing.