Hangs about (7)
'hangs about' is the definition.
(I've seen this in another clue)
This is the entire clue.
(Other definitions for loiters that I've seen before include "dawdles" , "Hangs about idly" , "Hangs around" , "Waits idly" , "Fails to move on" .)
(Another definition for dallies that I've seen is " wastes time".)