A loan is a type of debt. It is a a sum of money that is borrowed and expected to be paid back with interest. Typically, the money is paid back in regular ‘installments’, or partial repayments, over time.
Source: Loan @ Wikipedia
- Personal loans @ The Money Advice Service
Excerpt: If you want to borrow money and pay back an amount every month, a personal loan is one option. Here’s what you need to think about before you borrow and how to make sure you get the best deal for you.
- What Is A Loan? @ WiseGeek
Excerpt: A loan is a financial transaction in which one party (the lender) agrees to give another party (the borrower) a certain amount of money with the expectation of total repayment. The lender can ask for interest payments in addition to the original amount loaned (principal). The borrower must agree to the repayment terms, including the amount owed, interest rate and due dates. Some lenders can also assign financial penalties for missed or late payments.