Definition

1. Noun:
   • A consumer loan is a sum of money borrowed by an individual for personal, family, or household purposes. It is a type of credit extended to consumers, typically unsecured (not backed by collateral like a house or car), and is granted based primarily on the borrower's creditworthiness, integrity, and demonstrated ability to repay.

Examples

• Noun:
  • She took out a consumer loan to consolidate her high-interest credit card debt.
  • The bank offers various consumer loans for purposes like home improvements or medical expenses.
  • Interest rates for an unsecured consumer loan are often higher than for a mortgage.

Advanced Usage

• "To secure a consumer loan": To successfully obtain a consumer loan from a lender.
  • With a good credit score, it was easy for him to secure a consumer loan.
• "Consumer loan debt": The total amount of money owed from consumer loans.
  • Rising consumer loan debt can be a concern for the economy.

Variants and Related Words

• Personal Loan (n): A common synonym for a consumer loan, emphasizing its use for individual needs.
  • A personal loan can be used for almost any purpose.
• Installment Loan (n): A type of consumer loan repaid with a fixed number of scheduled payments.
  • Most auto loans are a form of installment loan.
• Unsecured Loan (n): A loan that does not require collateral, which is a typical characteristic of a consumer loan.
  • Credit cards provide a line of unsecured loan.

Synonyms

• Personal loan
• Unsecured loan (in common usage)
• Signature loan (a less common term)

Related Phrases

• Loan application: The process of formally requesting a consumer loan.
  • Filling out the loan application required detailed financial information.
• Loan agreement: The contract that outlines the terms of the consumer loan.
  • He signed the loan agreement after reviewing the interest rate and repayment schedule.
• Loan repayment: The act of paying back the consumer loan.
  • She set up automatic loan repayments from her bank account.

Noun

1. a loan that establishes consumer credit that is granted for personal use; usually unsecured and based on the borrower's integrity and ability to pay