Personal loan is a loan which can be obtained for any reason whatever it may be. Bank is not interested in the reason behind the loan only thing the banks are interested in while providing the loan is the credit history of the applicant and his income status. Both of which are determined by the CIBIL records of that person and the documents the person provides to the bank. Through this loan a man in debt can also pay his debts in whatever form they may be. The debt may be another bank loan or the money he borrowed from anyone or any other form of financial debt.
This may also be the best way to pay your debt as in many cases the rate of interest on a personal loan can be much lower than the rate of interest applied by the private financers available in the market. Sometimes these financers may even impose a rate of interest from 36% to 48% depending on the situation and the need of money by the loan seeker. However, the rate of interest on a personal loan is from 12% to 32% which is much lower compared to the private financers in the market. So, in the first place you should always go for personal loans instead of private financers if possible and you have a good credit history and good income status. And even if you have a bad credit history some banks can provide you with a bad credit personal loan.