A loan is a financial agreement where a lender provides a borrower with a specific amount of money that must be repaid, usually with interest, over a set period. Loans come in various forms, including personal loans, auto loans, mortgages, and student loans, each designed for different purposes. When considering a loan, it’s essential to understand the terms, interest rates, and repayment schedule to ensure it aligns with your financial situation. Responsible borrowing can help you achieve significant life goals, such as buying a home or financing an education, while building a positive credit history.
