Loans

Loan Services

A loan represents the repayment of the principal amount and interest by a borrower in exchange for the actual amount provided by a lender. There are two types of loans: secured and unsecured. Secured loans involve the lender acquiring collateral if the borrower fails to repay the loan on time, while unsecured loans have no collateral requirement.

Loans are considered liabilities for borrowers, while they serve as assets for lenders. They can be both useful and risky options if not managed properly.

In essence, a loan is a sum of money borrowed by one or more individuals or companies from banks or other financial institutions to manage planned or unplanned events. By doing so, the borrower incurs a debt that must be repaid with interest within a specified period.

Before any money changes hands, both the borrower and the lender must agree on the terms of the loan. In some cases, lenders may require borrowers to provide an asset as collateral, a detail outlined in the loan document.