Loans to euro-area residents comprise credit supplied by monetary financial institutions to households, companies outside the financial sector and public authorities domiciled in the euro area. The category covers lending recorded as a loan rather than as a negotiable security; once a loan is tradable, it is treated as a single financial instrument. Household borrowing is divided into consumer credit, housing finance and other loans. Consumer credit is used to pay for goods and services for personal use. Housing finance supports the acquisition, construction or improvement of residential property. The remaining category covers purposes such as education and the restructuring of existing debts.
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.