Personal loans have become very popular of late because of the simple procedure to avail one. At most times, pre-approved personal loans are available. Personal loans can serve individuals in case of medical emergencies, higher education, travel plans, etc. However, even though it is very convenient for individuals to get a personal loan, it is vital to understand how a personal loan works and its repayment process. A personal loan is a form of an unsecured loan which has a repayment tenure that is flexible and can be chosen by the individual as per their capabilities.