Personal loans are available from most banks, both physical and online, and the money borrowed can be used for almost anything, including paying bills and purchasing a new smart TV. Because the loan is unsecured—that is, the borrower does not provide collateral that could be taken in the event of default, unlike a home mortgage or auto loan—it is a costly method of borrowing money. A personal loan often has a maximum amount of several thousand dollars and a maximum repayment duration of two to five years.