personal-loan

Vocabulary Word

Definition

'Personal loan' is a sum of money that you can borrow from a financial institution for personal expenses. Unlike a mortgage or car loan, it's not linked to a specific purchase. You repay it over time with interest.

Examples in Different Contexts

In budgeting, managing a 'personal loan' involves planning monthly payments to avoid late fees and impact on credit score. A budget advisor might suggest, 'Incorporate your personal loan repayment into your monthly budget to stay on top of your finances.'

Practice Scenarios

Finance

Scenario:

Repaying multiple credit cards with high interest can become overwhelming. It's important we rethink your debt strategy.

Response:

I agree. Is it worth considering a personal loan to pay off my credit card debts?

Retail

Scenario:

With unexpected medical expenses, I realize you might need immediate funds. Our bank has multiple lending products which might be of help.

Response:

I didn't know about these. Can you tell me more about your personal loan options?