Loans

A loan is a sum of money borrowed from a lender, such as a bank or financial institution, that must be paid back over time, usually with interest. Borrowers receive the funds upfront and agree to repay the amount in installments according to the agreed terms. Loans are commonly used for big expenses like buying a home, car, or funding education. The interest charged compensates the lender for the risk and the convenience of lending. Clear terms, including repayment schedule and interest rate, are outlined in a contract to ensure both parties understand their obligations.