A loan is a financial agreement in which a lender provides money to a borrower with the expectation that it will be repaid over time, usually with interest. Loans are commonly used to finance major expenses such as buying a home, purchasing a car, funding education, or supporting business growth. They can be secured, requiring collateral like property or assets, or unsecured, based on the borrower’s creditworthiness. Loan terms typically include the principal amount, interest rate, repayment schedule, and duration. Understanding how loans work helps individuals and businesses make informed financial decisions and manage debt responsibly.