Meaning of the word "take out a loan" in English

What does "take out a loan" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

take out a loan

US /teɪk aʊt ə loʊn/
UK /teɪk aʊt ə ləʊn/
"take out a loan" picture

Idiom

to borrow a sum of money from a bank or financial institution, usually with an agreement to pay it back with interest

Example:
They had to take out a loan to buy their first house.
Is it a good time to take out a loan with these interest rates?