A loan is a financial transaction in which a lender provides a specific amount of money to a borrower, who agrees to repay the loan along with interest over a predetermined period.
Loans can be used for various purposes, such as purchasing a home, funding education, or covering unexpected expenses. The terms of the loan, including interest rates and repayment schedules, are agreed upon before the funds are disbursed.
Loans play a crucial role in personal and business finance, facilitating access to capital for achieving financial goals.
