Which type of financial institution provides loans to consumers?

Savings and Loans (S&Ls) are financial institutions specifically designed to provide lending services to consumers, primarily in the form of home mortgages and personal loans. They play a crucial role in supporting individuals looking to purchase homes by offering favorable loan terms and interest rates. S&Ls also take deposits from customers, which can be used to fund these loans, making them a vital part of the residential financing landscape.

In contrast, investment banks are primarily focused on offering services related to capital markets, mergers, and acquisitions, rather than consumer lending. Insurance companies provide financial coverage against risks and typically do not engage in consumer lending as their primary function. Brokerages facilitate the buying and selling of securities and do not extend loans to consumers in the way that savings and loans do. Therefore, the primary role of savings and loans in granting loans to consumers clearly identifies them as the correct choice in this context.