Purchase Loans

A purchase loan is a type of financing arrangement that enables individuals to acquire a valuable asset by borrowing funds from a lender. This may involve purchasing a home, vehicle, or other costly item that would otherwise be out of reach due to limited financial resources. The terms of the loan are typically determined by the lender’s policies and the borrower’s credit profile. Unlike loans used to finance intangible assets such as education or business ventures, purchase loans are specifically designed to facilitate the acquisition of tangible goods and property.

See also: Credit card, Consumer good.