A loan facility generally available under a personal pension scheme. Common uses of the loan include purchase of house or business premises (pension mortgages), or new machinery, or meeting short-term requirements. The policyholder has to provide security for the loan, as the pension policy cannot be used for this purpose. A first or second charge on property is normally taken but the lender may take other forms of security. The loan does not have to be repaid until retirement at which time it is financed out of the tax-free lump sum available at that time.