LOAN

A loan is a sum of money that is borrowed from a lender and is repaid with interest over a period of time. Loans can be secured or unsecured. A secured loan is a loan that is backed by collateral. This means that if you default on the loan, the lender can take the collateral to recoup their losses. An unsecured loan is a loan that is not backed by collateral. This means that if you default on the loan, the lender has no recourse but to sue you.