What's loan meaning and how it works ?
A loan is a commitment that you (the borrower) will receive money from a lender, and you will pay back the total borrowed, with added interest, over a defined time period. The terms of each loan are defined in a contract provided by the lender. Secured loans are loans where borrowers can put up an asset (like a house) as collateral. This gives the lender more confidence in the loan. Unsecured loans are loans approved without collateral, so the lender takes on more risk.