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/Sounds like "LOH" (as in "loan") + "koh" (as in "coat")/

Meaning

An informal way to address a friend or acquaintance in Argentina, Chile, and Peru. It's used constantly between friends no matter the situation, from casual chats to heated arguments.

Examples

Come on, loco, let's go, we're gonna be late.

What's up, loco? Haven't seen you in ages.

Anonymous

Tail, bottom, or rear end. In Caribbean slang it can be quite explicit depending on context, but in standard use it simply refers to the back end of a person or animal.