Navigating the World of Personal Loans: Everything You Need to Know

### How Personal Loans Work

When you apply for a personal loan, the lender evaluates your credit score, income, employment history, and debt-to-income ratio to determine your creditworthiness. Based on this assessment, the lender approves your loan amount, interest rate, and repayment terms. Once approved, you receive the funds as a lump sum, and you are required to repay the loan in fixed installments over a specified period, typically ranging from one to seven years.