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

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

There are other options like credit consolidation and personal loans in the private sector.

From MarketWatch

That would lower the cost of borrowing on mortgages and other personal loans, but also reduce the interest paid on savings.

From BBC

Blue Owl’s surging stock gave them collateral to use for personal loans.

From The Wall Street Journal

These changes helped them save thousands of dollars in credit-card interest over several years — and they ultimately paid off the personal loan early.

From MarketWatch