A bank loan is a pre-established sum of credit lent to a pre-approved applicant(s) by their chosen financial institution which is the case of a ‘bank loan’ is by definition necessity a bank.

This type of loan like all others is subject to the bank’s interest rate, which may be fixed or variable depending on the loan agreement.

The loan must be paid off on or by a pre-determined date, including the interest paid. Applicants are typically screened prior to approval with a number of measures typically employed.

These may include an interview, evidence of savings, evidence of regular income and assets, credit history checks and so forth.