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

This person had around $25,000 in credit-card debt with a 24% APR, and they took out a $30,000 personal loan at 11% interest to pay it off.

From MarketWatch • Feb. 26, 2026

“If you don’t have quite good enough credit to qualify for a 0% balanced-transfer card, a low-interest personal loan is a pretty good consolation prize,” Schulz said.

From MarketWatch • Feb. 26, 2026

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

From "Seabiscuit: An American Legend" by Laura Hillenbrand