loan

A Loan is a contract between a money lender and a borrower, which states that the borrower has to repay the amount of money borrowed along with interest in the future. Most loans have fixed repayment period, and the borrower has to repay the principal of the loan in full during this period by doing weekly, by-monthly, monthly, bi-yearly or yearly repayments. The borrower is obligated by the loan contract to pay interest on the loan to the lender.

You can get loan to buy a car, to buy a house, or to pay student fees. You can also get a consolidation loan, bad credit loan, business loan, etc.

The loan you are getting can be secured by an asset or can be unsecured loan. If the loan is secured the money lender has the right to sell the collateral if the borrower defaults on the loan.