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

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

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

Stuck with mounting debt carrying 22% to 26% APR, Um helped the client refinance the debt into a three-year personal loan with a 9.5% APR.

From MarketWatch • Feb. 26, 2026

Rød‑Larsen resigned in 2020 from the International Peace Institute after he acknowledged he had received a $130,000 personal loan from Epstein in 2013.

From The Wall Street Journal • Feb. 6, 2026

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

From "Seabiscuit: An American Legend" by Laura Hillenbrand