Milan wants to open a restaurant in his neighborhood, where he’ll serve his family’s favorite Croatian dishes. He’s found a location to rent and needs to purchase the proper equipment, but he has very little money of his own. Milan makes an appointment to talk to someone at the local branch of his bank about getting a loan.

Milan needs to borrow money to start a restaurant, which is a business. A commercial loan is used to finance business needs such as equipment and startup costs, so the correct choice is commercial. Auto loans are for vehicles, student loans are for education, and mortgages are for buying real estate.

AI-written and checked against the verified answer.