noun a sum of money that is borrowed and expected to be paid back with interest
verb to lend (someone) something, typically money, under an agreement that the borrower will return the same amount at a later date
In the finance industry, a loan refers to a sum of money that is borrowed from a financial institution or lender with the agreement to be paid back with interest over a specified period of time.
Banks offer various types of loans to individuals and businesses, such as personal loans, home loans, car loans, and business loans.
A mortgage loan is specifically used to purchase real estate, with the property serving as collateral for the loan.
Student loans are used to finance higher education expenses and are typically offered at lower interest rates than other types of loans.
Small business owners often rely on loans to start or expand their businesses, with options including term loans, lines of credit, and SBA loans.
In the field of microfinance, loans are provided to low-income individuals or groups who lack access to traditional banking services, helping them start small businesses or improve their livelihoods.
A writer may take out a loan to fund a new book project or cover living expenses while working on a manuscript.
A psychologist may use a loan to finance additional training or education, such as pursuing a specialized certification or degree.
An entrepreneur may seek a loan to start or expand a business, purchase equipment, or invest in marketing and advertising.
A teacher may take out a loan to further their education, attend professional development workshops, or cover unexpected expenses.
A doctor may use a loan to open a private practice, purchase medical equipment, or invest in continuing medical education.