The main feature of a personal loan is that it doesn’t require any collateral or security. It comes with zero restrictions on how you can spend the money. You can use it to fund your dream vacation, your child’s marriage, or simply to buy household utility items. Beware that because the lender has no security, it can be the most expensive form of a retail loan with high interest rates. However, if you have an urgent need for money, and have a specific plan on how to repay it diligently and consistently, then a personal loan is the ideal choice.