What is a loan?

A loan is a form of financial assistance that helps people access money when they need it. It is an agreement between two parties, the lender and the borrower, where the lender provides money to the borrower with interest rates. People can use loans to pay debts, save money for future investments, or finance educational goals. With a loan, people can have access to credit and make investments in areas that could not be accessed before. Understanding loans is important for any person’s financial education and for making smart decisions about how to manage their money.