What is a Loan?
A loan is an financial instrument in which a lender loans money to a borrower for a pre determined period of time at a predetermined interest rate, usually secured by some form of property.
The lender usually has to bear the risk that the borrower may not pay the loan back, that is why they usually want some form of security.
More about what is a loan can be found on the following pages, secured loans and unsecured loans explaining the different types in more detail.
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