By using this site, you agree to the Terms of Use and Privacy Policy. Why the Bank of England has raised interest rates 2nd November The types of loans a commercial bank can issue vary and may include mortgages, auto loans, business loans, and personal loans. The interest rate on most credit cards far outweighs that charged for any other type of loan. In this way, the finances of several bank customers are managed using the funds of perhaps one depositor. The amount of money earned by a commercial bank is determined by the spread between the interest it pays on deposits and the interest it earns on loans it issues, which is known as net interest income. This interest is paid from the money the bank earns by lending out the deposited money to other customers.