A consumer loan is a type of loan given to consumers to finance specific types of expenditures. It is a category of lending products designed to help consumers finance a wide range of purchases, from day-to-day shopping needs to major life events such as buying a home. Consumer loans can be secured or unsecured, depending on whether they are backed by collateral or not. Some common types of consumer loans include personal loans, mortgages, credit cards, auto loans, education loans, refinance loans, home equity loans, and payday alternative loans.

Consumer loans can be structured in one of two key ways: either as a fixed loan that is repaid over a set period of time or as a revolving credit account that allows consumers to borrow up to a certain limit and repay the balance over time. The eligibility criteria for consumer loans vary depending on the lender, but generally, borrowers need to provide identity proof, address proof, income proof, and other documents such as a current credit card or loan statement.

Consumer loans can offer several benefits, such as helping consumers finance purchases they might not be able to afford upfront, building credit history, and providing a source of emergency funds. However, it is important to use consumer loans responsibly and not abuse the privilege of these products.