Personal loan businesses hold significant importance both at the national and banking levels. Nationally, personal loans enhance the purchasing power of both urban and rural populations. This boost in purchasing power stimulates consumer demand, cultivates a thriving market, and supports production and industrial growth, thereby promoting overall economic development. At the banking level, personal loans serve to adjust the credit structure, thereby improving the quality of credit portfolios. They also increase interest income and generate additional revenue through various financial services. Given the extensive number of individual borrowers, personal loans also help diversify the credit risk faced by commercial banks. They reduce operational costs and bolster the stability of banks by ensuring a steady flow of income. Consequently, the sustainable and healthy growth of the personal loan sector is pivotal for the efficient and resilient functioning of commercial banks.