A Bank loan is a sum of money borrowed from a financial institution or a bank. Individual or organization acquire this type of loan is liable to repay the debt together with interest charges until the principal sum of money is fully repaid.

Generally, it consists of other miscellaneous costs such as arrangement fees, insurance, covenant compliance costs, and professional advice charges.

Each bank would have different interest rate charges, and the rate depends on the total amount and the type of bank loans offered.