When banks make loans they charge a [[rate of interest]] to do so. That rate is always higher than the rate they pay out for deposits. The most common form of loan is a [[home loan]], although banks can also make [[personal loans]], [[business loans]] or provide [[home equity line]]s based upon the [[equity]] in a home after all loans against the [[private property|property]] are subtracted. Loan availability and loan rates usually based upon yearly [[household income]] and [[credit score]]s.
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When banks make loans they charge a [[Interest rate|rate of interest]] to do so. That rate is always higher than the rate they pay out for deposits. The most common form of loan is a [[home loan]], although banks can also make [[personal loans]], [[business loans]] or provide [[home equity line]]s based upon the [[equity]] in a home after all loans against the [[private property|property]] are subtracted. Loan availability and loan rates usually based upon yearly [[household income]] and [[credit score]]s.