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What is a loan ? Know it all

Here are some definitions of what a loan it really is. Definitions from the dictionary and from the financial institutions.

A loan is a sum of money borrowed from the bank to assist for certain planned or unplanned events. The borrower is required to pay back the loan, including the interest charged over a stipulated period. There are several types of loans for various financial requirements. A bank can grant a loan in the form of a secured or unsecured loan.


A secure loan is usually a large sum of money that is needed to purchase a house or car and is the ideal choice for a home loan or car loan. An unsecured loan is preferential for student loans, or personal loans which usually consist of smaller amounts of money.

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