consumer lending

Consumer lending involves banks or financial institutions providing individuals with loans or credit to purchase goods, services, or cover expenses. Examples include personal loans, credit cards, auto loans, and mortgages. These lenders assess a borrower's financial situation to determine eligibility and interest rates. When consumers borrow, they agree to repay the borrowed amount, usually with interest, over a specified period. Consumer lending helps individuals manage expenses, make significant purchases, or access funds they might not have readily available, playing a key role in personal finance and economic activity.