A loan that is extended to individuals (natural persons) rather than institutions (legal persons). Retail loans may include those extended for car purchases (auto loans), home purchases (mortgage loans), medical care, home repair and fixings, holidays and other consumers needs and uses.

A retail loan can be secured or not, or intended for a particular use or not, excluding credit card facilities, current account overdrafts, and loans to individuals for starting their own businesses. Though retail loans are not intended for starting a business, however these loans might be important for small business owners when it comes to expanding their enterprise. A small business owner may take out a retail loan in order to buy a new retail location, merchandise, or a business car.