personal loan

American  

[pur-suh-nl lohn] / ˈpɜr sə nl ˈloʊn /

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.

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Etymology

Origin of personal loan

First recorded in 1850–55

Example Sentences

Wiederhorn pleaded guilty to filing a false tax return and releasing a personal loan guarantee in violation of federal pension law.

From The Wall Street Journal • Mar. 16, 2026

For years, Burkle served as a mentor and a friend, even extending Anderson a personal loan to purchase his home, the complaint alleges.

From Los Angeles Times • Mar. 6, 2026

“A personal loan works when it’s part of a reset. It hurts when it’s just fuel for the same habits.”

From MarketWatch • Feb. 26, 2026

With an estimated 12% APR, a personal loan would cost $698,000 over the same period with monthly repayments of over $3,000.

From MarketWatch • Jan. 21, 2026

Howard bailed him out with a reported $190,000 personal loan.

From "Seabiscuit: An American Legend" by Laura Hillenbrand