What do banks typically charge on loans they offer?

Banks typically charge interest on loans they offer, which is the cost of borrowing money. Interest is expressed as a percentage of the loan amount and is calculated over a specific period. When you take out a loan, you agree to repay the principal amount borrowed plus interest, making it a fundamental aspect of lending practices. The interest rate can vary based on factors such as the borrower's creditworthiness, the type of loan, and current market conditions.

While banks may also charge fees for various services (like application fees or late payment fees) or require minimum balances for certain accounts, those are not the primary cost associated with loans. Commissions are generally related to brokerage services or financial advising and are not applicable to loans, making interest the most relevant and direct charge when discussing loans.