A personal loan is one of the oldest unsecured loans available to borrowers. They are easy to avail of, and if they are pre-approved, it becomes a lot easier for the borrower to avail of them as well. The reason why personal loans are so popular with borrowers is because of the fact that the borrower can use it for any purpose, unlike loans which are collateral-based and have to be used for the specific purpose for which they are borrowed.