Before you seek any personal loan, you should understand what a personal loan is. Mostly, there are two types of personal loans: secured and unsecured loans.
A secured loan necessarily needs the backing of collateral. Formal financial institutions like banks and other companies offering loans would accept your home or car or some such valuables as collateral but if you fail to pay back the loan as per the terms of loan for any reason, the lender has a right to acquire you collateral and dispose it off to recover its money.
As the name indicates, such loans are not secured, meaning the borrower need not provide any collateral. You can generally avail of this type of loan on having an excellent credit score. In this case, your credit history suffices to ensure the lender that the loan will be paid back.