Personal loans are disbursed to individuals. The decision to lend is based on your personal financial status and you are fully liable for paying the loan. Use cases for the personal loan are often, but not always, unrestricted- meaning you can spend it on whatever you decide. Business loans on the other hand, are judged based on the business's performance mainly. Sometimes the individuals financial status and credit history will also be required, depending on the business's registration status. Use cases are often, but not always, more restricted than personal loans. Personal Liability for a business loan varies depending on the type of business your company is registered as.