bank-loan

Vocabulary Word

Definition

A bank loan is money that a bank lends to you, which you have to pay back with interest over a set period. The interest is how the bank makes money from the loan.

Examples in Different Contexts

In personal finance, a bank loan is borrowed money that must be repaid with interest. A financial advisor might say, 'Before taking out a bank loan, consider your ability to meet the monthly payments to avoid financial strain.'

Practice Scenarios

Creative

Scenario:

The costs for producing this play turned out to be much higher than expected. What are our financing options?

Response:

Perhaps we could look into getting a bank loan to meet the production costs.

Business

Scenario:

Our cafe expansion plan requires a significant capital infusion. Where do you suggest we source it?

Response:

I suggest we consider taking out a bank loan to fund the expansion.