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Bank Loan for Dummies

noun

pronunciation: bæŋk_loʊn

What does Bank Loan really mean?

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Hey there! So, a bank loan is when you borrow money from a bank and then pay it back over some time. It's like when you need some extra money for something important, like buying a house or starting a business, and the bank lets you borrow the money as long as you promise to pay it back with some extra money on top, called interest.

Think of it like borrowing a video game from a friend. They let you take it, but then you have to give it back later, plus maybe a few extra games as a thank you for letting you borrow it.

So, when you take out a bank loan, you're basically borrowing money from the bank and then paying it back in installments, kind of like when you split a big pizza with your friends and each person pays for their own slice.

And there are different types of bank loans, like personal loans for things like buying a car or paying for school, or business loans for starting or growing a business. But no matter what kind of loan it is, the basic idea is the same - you're borrowing money and then giving it back later, plus a little bit extra.

I hope that helps you understand what a bank loan is! Let me know if you have any more questions.

Revised and Fact checked by Michael Davis on 2023-11-15 20:16:25

Bank Loan In a sentece

Learn how to use Bank Loan inside a sentece

  • When someone wants to buy a house, they might go to a bank to get a bank loan to help them pay for it.
  • Many small businesses need a bank loan to start or grow their company, like to buy inventory or new equipment.
  • If someone wants to go to college but doesn't have enough money, they might need to get a bank loan to help pay for their tuition and living expenses.
  • Sometimes people need a bank loan to buy a car because they don't have enough money to pay for it all at once.
  • When a person needs to make a big purchase, like a new computer or furniture, they might consider getting a bank loan to help cover the cost.

Bank Loan Hypernyms

Words that are more generic than the original word.

Bank Loan Hyponyms

Words that are more specific than the original word.