Loans - Page 2

Loans are financial agreements in which one party, typically a lender, provides a sum of money or property to another party, the borrower, with the expectation that it will be paid back over time, usually with interest. The borrower receives funds upfront and agrees to repay the principal amount along with any accrued interest according to a specified schedule. Loans can vary in terms of amount, interest rate, repayment period, and type, including personal loans, mortgages, auto loans, and student loans. They are often secured by collateral, which can be seized by the lender if the borrower defaults on the repayment. Loans serve various purposes, including financing purchases, consolidating debt, or funding projects, and play a crucial role in the economy by facilitating consumption and investment.