purchase loan

Definition

A loan that is acquired to purchase something. Car loans and home loans are considered to be purchase loans. Purchase loans are usually repaid over a designated point of time and are issued with some sort of fixed or variable interest rate. "Becky and Tom applied for a purchase loan, so that they could purchase the Mercedes Benz they always dreamed of owning."

Use purchase loan in a sentence

You may want to try and take on a purchase loan if you need some help getting all the costs for it.

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I needed a purchase loan because I was about to make a really great purchase that everyone would be a part of.

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The purchase loan involved the bank owning the asset until the final payment has been made by the new borrower.

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purchase ledger indirect loan