Consumer loans are financial products that individuals use to borrow money for personal expenses, such as buying a car, financing education, or covering medical bills. These loans typically come with fixed or variable interest rates and are repaid over a set period, often through monthly installments. Common types of consumer loans include personal loans, auto loans, and student loans. Lenders, such as banks and credit unions, assess a borrower's creditworthiness before approving a loan, which helps determine the interest rate and loan amount.