Loans work by letting you borrow money from a bank or lender with the promise to pay it back later. You pay back the amount you borrowed, called the principal, along with extra money called interest. Payments are usually made in smaller amounts over weeks, months, or years, depending on the loan. This helps people afford big purchases or cover costs without needing all the money at once.

Loan shopping means comparing different loans before deciding which one to take. You look at things like interest rates, fees, and how long you must pay the money back. This helps you find the loan that costs the least and fits your needs best. Taking time to shop for a loan can save you a lot of money in the long run.

Applying for a loan means asking a bank or lender to give you money that you promise to pay back. You usually need to share personal details like your income, job, and credit history so the lender knows you can repay. The lender then reviews your information to decide if you qualify and how much you can borrow. If approved, you agree to the terms and start making payments as planned.

Buying a bike is a lot like getting a business loan. You wouldn’t buy the first bike you see—you would compare prices, features, and quality before choosing. A loan works the same way. Each offer has different costs, and picking the right one can save your business a lot of money.