What "loan" means in finance

A loan is a financial transaction in which one party (lender) provides money or assets to another party (borrower) with the expectation that the borrowed amount will be repaid with interest within a specific time frame. Loans can be secured or unsecured, and may be used for a variety of purposes such as purchasing a home or car, paying for education, or starting a business. The terms and conditions of a loan, including interest rates, repayment schedules, and fees, are typically set in a loan agreement between the lender and borrower.