<human>:  Can you explain to me how a bank loan works?
<bot>: A bank loan is a sum of money that you borrow from a bank to cover expenses or make a purchase. The bank sets a repayment period, typically ranging from a few months to several years, during which time you are required to make regular payments of principal and interest. The interest rate will generally be based on your credit score and other financial factors. The bank will also likely require you to put up collateral, such as a vehicle or property, to secure the loan. Once the loan is paid back in full, the collateral can be released.