A loan is a financial arrangement where a lender provides a specific sum of money to a borrower, typically with the expectation that it will be repaid over time with interest. Loans serve as a vital tool for individuals and businesses to access capital for various purposes, such as buying a home, starting or expanding a business, funding education, or covering unforeseen expenses. They come in various forms, including personal loans, mortgages, auto loans, and business loans, each tailored to specific needs and accompanied by terms and interest rates. Responsibly managed loans can facilitate financial goals, but they also entail a commitment to timely repayment to avoid financial strain and debt accumulation.