Which institutions are commonly known for issuing personal loans?

Personal loans are typically provided by banks and credit unions, which are financial institutions specifically designed to offer a range of banking services, including loan products. Banks have longstanding experience in evaluating creditworthiness and managing loan portfolios, allowing them to offer personal loans with various terms and interest rates.

Credit unions, being member-owned, often provide more favorable terms and lower interest rates for loans compared to traditional banks. They are also known for their personalized service and community focus, making them a popular choice for personal loans among consumers.

While other types of institutions, such as payday lenders, may also offer personal loans, they usually do so under more stringent terms, which can often lead to very high-interest rates and fees. Insurance companies and investment firms typically do not issue personal loans, as their primary functions revolve around risk management and investments, respectively. Therefore, banks and credit unions stand out as the primary and most reliable sources for personal loans in a conventional financial context.