A personal loan traditionally offers a lump sum of funds at origination with fixed monthly payments over the life of the loan. Term options for personal loans typically vary from 1 to 5 years and offer lower loan amounts.
With a personal line of credit, borrowers can draw on their loan multiple times during the “draw period”, allowing them to access the full loan amount once the principal is repaid. A line of credit generally offers longer-term options and higher loan amounts for those looking to fund larger purchases or life events. Learn more about personal lines of credit vs. personal loans.