A personal bank loan is a financial product that allows individuals to borrow a specific sum of money from a bank or credit institution. Unlike mortgages or auto loans, personal loans are typically unsecured, meaning they don't require collateral. These loans are versatile and can be used for various purposes, such as consolidating debt, funding a vacation, or covering unexpected expenses. Personal loans often have fixed interest rates and set repayment terms, distinguishing them from revolving credit lines like credit cards.