Personal loans: read the APR, not the rate
Personal loans are unsecured, so rates are higher than home or auto loans — typically 11–24%. Two offers with the same nominal rate can differ hugely once processing fees, insurance bundling and prepayment penalties are factored in. The APR field here gives you the apples-to-apples comparison.
Flat vs reducing rate matters more for personal loans than any other category. A 12% flat rate is roughly equivalent to a 22% reducing rate — always confirm which method the lender uses before signing.
If you're consolidating credit-card debt, even a 15% personal loan beats a 36% card APR. Use this calculator to model the savings.
Personal loans have shorter tenures, so prepayment savings are smaller in absolute terms — but the percentage saved on interest is still substantial. Check for prepayment penalties before committing extra cash.