Instalment loans and Revolving loans are the two popular unsecured personal loans offered by most banks. With instalment loans, you are bound to a fixed instalment schedule and are required to make regular fixed payments over an agreed timeframe (i.e. loan tenure) to settle your loan amount.
Revolving loans are more flexible than instalment loans and are similar to owning a credit card. Typically, the bank establishes a revolving loan facility and decides on the maximum amount you can borrow using your facility (also known as your credit limit). You can always borrow as many times as required using the revolving loan facility as long as the total amount borrowed does not exceed the credit limit. Revolving loan facilities have no fixed repayment schedule and as you settle the loan amount, the available credit is adjusted back to the original credit limit.