A loan is the amount of money that is given by the lender to the borrower who needs it to fulfill his needs and desires. Lenders offer different types of loans for different purposes. You can take out a car loan when you want to buy a car. Lenders can offer you a home loan to help you purchase a house.

It is not necessary that you have to take out a specific loan for a specific purpose. You can take out a personal loans that can be used for a number of purposes. A personal loan can be used to buy a car, to pay for a holiday trip, to finance your child