The phrase "loose fit" means that something, like clothing, is not tight or snugly fitted to the body. It allows for more space and is more relaxed and comfortable to wear. Full definition
Pair your cotton shorts with loose fitting tops tucked in for an uber - casual appearance, or a well - fitted top with a cotton jacket for a pub - ready look. (myntra.com)
Always pack a couple pairs of loose fitting tops so that you can be sure to have a fresh shirt if you need it. (earlymomentsmatter.org)
I like the slightly loose fit of the small with the white, but I could also go for a more fitted look too. (ladyinviolet.com)