Loan

A loan is a financial arrangement in which a lender provides funds to a borrower. In this arrangement, the borrower must repay the borrowed amount along with interest over a set period of time. A loan can be used for various purposes, such as purchasing a home, financing a business, or covering expenses.

The terms of a loan include the borrowed principal amount, interest rate, repayment schedule, and any additional charges. Loans can be secured or unsecured.

• Secured Loans: Secured loans are backed by collateral, such as real estate or assets.
• Unsecured Loans: Unsecured loans rely completely on the creditworthiness of the borrower.