A personal loan is an unsecured loan that you can use for various purposes, such as consolidating debt, financing a large purchase, or covering unexpected expenses. Unlike secured loans, personal loans don't require collateral, which means the interest rate is typically higher to offset the lender's risk.

Key Components of a Personal Loan:

• Principal: The amount you borrow.
• Interest Rate: The annual cost of borrowing, expressed as a percentage.
• Loan Term: The period over which you'll repay the loan.
• Monthly Payment: The amount you pay each month, which includes both principal and interest.

How to Use This Calculator:

1. Enter the loan amount you're considering.
2. Input the annual interest rate offered by the lender.
3. Specify the loan term in years.
4. Click "Calculate" to see your results.

The calculator will show you the annual payments, how much goes towards principal and interest each year, and your remaining balance. The chart visualizes how your loan balance decreases over time while showing the cumulative interest paid.

Remember, a lower interest rate and shorter loan term will generally result in less total interest paid over the life of the loan. Always compare offers from multiple lenders to find the best terms for your financial situation.