personal loan

  

Definition

Consumer loan granted for personal (medical), family (education, vacation), or household (extension, repairs, purchase of air conditioner, computer, refrigerator, etc.) use, as opposed to business or commercial use. Such loans are either unsecured, or secured by the asset purchased or by a co-signor (guarantor). Unsecured loans (called signature loans) are advanced on the basis of the borrower's credit-history and ability to repay the loan from personal income. Repayment is usually through fixed amount installments over a fixed term. Also called consumer loan.

Use personal loan in a sentence

  • Sharon needed some extra cash to help pay her month�s rent on time, so I gave her a personal loan until she could pay me back.

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  • If you are thinking about making a personal loan you must make sure that the person you give it to is very trustworthy.

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  • Though she'd originally purchased the breast implants with a personal loan, Dolly felt sure she could justify writing them off as a business deduction.

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