A loan is a sum of money, property, or other material goods given by one party (the lender) to another (the borrower) with the agreement that the borrower will repay the principal amount plus interest over a specified period. Loans can be secured (backed by collateral) or unsecured and typically involve a contract that outlines the repayment terms, interest rate, and other conditions. The lender assesses the borrower's creditworthiness before approval, and loans can be used for various purposes such as buying a home, funding education, or supporting business operations.
