Learning Bank - Loans
Loans provide you with money you may not have right now to make large purchases and allow you to pay back the money over a certain period of time. Most people get loans from banks, and typically they are required to fill out an application with information about their financial history so that the bank can evaluate whether to provide the loan.
There are many kinds of loans to help people finance almost anything, which can be helpful. For instance, there are car loans, home loans (or mortgages), student loans for higher education expenses, and business loans (to provide money to start a business or keep a business operating) just to name a few.
However, it's important to remember that loans must be repaid. When you take out a loan, you have a legal obligation to pay the loan back plus interest, so be sure the amount of the loan is something you can afford to pay back and the purpose is worthwhile. Also, if you are late with loan payments, the bank will most likely charge you extra fees and report your late payments to the credit reporting agencies, which can affect your credit history and ability to get loans in the future.