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.

---

Etymology

Origin of personal loan

First recorded in 1850–55

Example Sentences

See Examples For:

personal loan

Another senior officer, the head of the police's organised crime unit Maj-Gen Richard Shibiri, admitted to receiving a "personal loan" of $4,000 from Matlala which he repaid.

From BBC ● Jul. 14, 2026

Although pricier, a bank might give you seven years to repay a personal loan; it wants to milk the rate, for sure, but it also gives you more agency over your future.

From MarketWatch ● Jun. 22, 2026

A personal loan is unsecured debt, so sometimes borrowers have to pay higher interest rates than if the loan were tied to a home or a car.

From MarketWatch ● Mar. 17, 2026

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

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

From "Seabiscuit: An American Legend" by Laura Hillenbrand