In finance, loan is the lending of money by one or more individuals, organizations etc. The recipient (ie the Borrower) incurs a debt, and is usually liable to pay interest on the debt until it is repaid, and also to pay the principal amount borrowed.
A personal loan is an unsecured loan with no restriction on the end-use. The purpose of the loan can be either consumption or productive use. For instance, you could borrow a loan for buying a high-end home theatre system, for a medical emergency if your health insurance falls short, for a foreign holiday with your family, etc. If you are an entrepreneur a personal loan can come in handy for expanding your business, such as adding more inventory or making the down payment for new office premises and so on.
Home loans (or mortgages) generally are used to purchase a home or refinance an existing home loan. Taking cash out in the form of a home equity loan or line of credit allows you to use the funds for almost anything. For home buyers, the primary purpose of a loan is to facilitate the purchase of a house or to finance the construction of one. A home is the biggest investment most people will ever make.