A loan is a form of debt incurred by an individual or other entity. The lender—usually a corporation, financial institution, or government—advances a sum of money to the borrower. In return, the borrower agrees to a certain set of terms including any finance charges, interest, repayment date, and other conditions.
What is called a loan?
Definition of loan can be described as a property, money, or other material goods that is given to another party in exchange for future repayment of the loan value plus interest and other finance charges.
What is loan and example?
A loan is money that you borrow from someone for a specific purpose or an unforeseen event with a promise to pay back.