Loan

A loan is a sum of money borrowed from a lender, such as a bank or financial institution, with the agreement to repay it over time, usually with interest. It helps individuals or businesses finance big purchases or investments they might not afford upfront. Repayment terms, including interest rates and duration, are established at the start. Once the borrower repays the loan in full, including any interest and fees, the obligation is satisfied. Loans are common financial tools used to manage cash flow, buy homes, fund education, or support business growth.