personal loan

[ pur-suh-nl lohn ]

noun

, Finance.

1. a loan made for discretionary use typically to a person with a high credit score who is generally not asked to provide collateral to back up the loan. A personal loan may be used for almost any purpose, such as consolidating credit card debt, making home improvements, or making a major purchase.

   She got a personal loan so she could take time off from work and go on a round-the-world cruise.

Word History and Origins

Origin of personal loan¹

First recorded in 1850–55

Example Sentences

Jason Gagnon, a spokesman for Calvert’s office, said one property was disclosed properly and the other was a personal loan that Calvert disclosed “even though he was not required to do so.”

From Los Angeles Times

Lending Tree’s definition of “debt” includes credit card debt, personal loans, borrowing against one’s home and debt that incurs interest.

From Los Angeles Times

In other words, there was no mortgage, student, auto or personal loan showing on their credit reports.

From Los Angeles Times

After battling inflation for more than two years, many lower- and middle-income Americans have run through their savings and are increasingly running up their credit card balances and taking on personal loans.

From Seattle Times

It has also agreed a partnership, initially for 10 years, under which Barclays will market and distribute credit cards, unsecured personal loans and deposits using the Tesco brand.

From BBC