personal loan

American

[pur-suh-nl lohn] / ˈpɜr sə nl ˈloʊn /

noun

Finance.

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.

Etymology

Origin of personal loan

First recorded in 1850–55

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

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

That signals a lot of Americans are probably locked in with high rates on things like personal loans, car payments, and credit card balances.

From Barron's

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

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023