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

You don’t mention whether this is a renovation mortgage where the property is used as collateral or whether it’s a personal loan to be used for the renovation.

From MarketWatch

WSJ | Buy Side: Your credit history, income and other factors determine your borrowing limit—see our guide for more on how much of a personal loan you can get.

From The Wall Street Journal

I am considering taking a distribution from one retirement account to pay off the personal loan and a loan from the other account to pay off my car, effectively “paying myself” the interest.

From MarketWatch

While the average interest rate on credit cards is around 23%, borrowers with strong credit profiles already have access to mortgages, auto loans, and other personal loans with rates well below 10%.

From Barron's

Consumers sometimes use personal loans to consolidate credit card debt and pay it off at a lower interest rate.

From Barron's