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 consumer advice, 'personal loan' options are compared for interest rates and terms to help borrowers make informed decisions. A consumer advocate might explain, 'Before taking out a personal loan, compare offers to ensure you get the best rate and terms.'

Practice Scenarios

Consulting

Scenario:

Seeing your multiple debts, we might need to consider a consolidated approach. Have you given any thought to debt consolidation loans?

Response:

Regarding debt consolidation loans, would a personal loan be a suitable option for me?

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?