Consumer lending refers to the process where financial institutions, like banks or credit unions, provide loans to individuals for personal use. These loans can help people finance various needs, such as buying a car, paying for education, or covering unexpected expenses. Borrowers typically repay the loan in installments over a set period, along with interest, which is the cost of borrowing money. There are different types of consumer loans, including personal loans, auto loans, and credit cards. Each type has its own terms and conditions, making it essential for borrowers to understand their options. Responsible borrowing can help individuals build their credit history and improve their financial health.