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Personal Loan

A personal loan is a loan provided by a bank or other lender. You borrow a fixed amount of money and repay it as specified in the terms.

You will still have to repay the loan in full with interest, but the loan will not be secured against your vehicle. If you are unable to keep up with your payments, you won't necessarily lose your car. You may be able to negotiate new terms, sell your car or other property to repay the loan, or find funds from an alternative source.

Personal loans are more suited to those with a good credit history and stable income. Missing payments can result in late payment fees and can lead to debt problems. You should only take out a personal loan if you can afford to repay the amount borrowed, including interest.