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

Now decades into their adult lives, many Gen Xers have accumulated other types of debt, often causing student-loan payments to fall down the priority list after credit cards and auto and personal loans.

Read more on The Wall Street Journal

For an owner who doesn’t have a huge amount left to pay off on their home, this may be a cheaper option than other types of consumer debt like a personal loan.

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There were also allegations Mr Minto and Mr Allsworth had both made personal loans to an employee and to distributors, which were not disclosed to the board.

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Payments on my credit cards and a personal loan eat up half the income I get from Social Security, my late husband’s pension and my IRA.

Read more on Los Angeles Times

"Credit card balances or personal loans can be especially draining on your finances," so you may want to tackle paying off high-interest debt sooner rather than later.

Read more on Salon