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Finance & Banking vocabulary · Loans & Credit

Personal loan

Meaning in finance & banking, with examples

nounCore term

In finance & banking, personal loan means: A loan given to an individual for personal needs such as a car repair, a wedding or education, and repaid in fixed instalments over a set period.

In Turkish: ihtiyaç kredisi, bireysel kredi, tüketici kredisi

How it is used

A core retail banking product. Customers apply for, take out and repay a personal loan. Most personal loans are unsecured, and the rate offered depends on the customer's credit score. 'Consumer loan' is the wider category that also covers car loans and other credit.

Example sentences

  1. She took out a personal loan to pay for her master's degree.

  2. Personal loan applications rose sharply after the rate cut.

Common collocations

  • apply for a personal loan
  • personal loan rate
  • pre-approved personal loan
  • consumer loan
  • unsecured loanA loan given without collateral, based only on the borrower's income and credit history. It usually has a higher interest rate than a secured loan.
  • take out a loanTo borrow money from a bank or another lender under an agreement to repay it over time.
  • credit scoreA number that shows how likely a person is to repay debts, calculated from their credit history, such as past loans, card use and late payments.
  • installmentOne of a series of regular payments used to repay a loan or to pay for something bought on credit.
  • secured loanA loan backed by an asset, such as a house, car or deposit, that the lender can take and sell if the borrower does not repay.

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.