Yes, a personal loan does cost you money. On top of the money that you borrowed, there will be interest payments you need to make. These will be added to your monthly payments, and usually, the interest rate is fixed on a personal loan (we recommend only applying for loans with a fixed interest rate). The interest rate is often how the lender makes their money, which can vary, so be sure to shop around to find the best deal.  Depending on the personal loan, you might also be asked to pay fees or a small deposit to secure the loan when applying for the loan. It's rare that a deposit is used for a personal loan, but not unheard of. If you miss a payment or make your monthly payment later than scheduled, you will also have fees. The amount of these fees vary from lender to lender, so be sure to check this in the fine print before agreeing to the loan.