Loans

A loan is defined as a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the ' and the '. The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt.

Most of the times, the borrower must guarantee with one of his properties for the loan or with a person that guarantees for him. In case he doesn't pay, that person must pay for him or his property is taken by the lender to cover the debt.

Generally, the lender wins from a loan because he doesn't get only his money back but also a fee he receives because he gave money to the borrower.

It's very important to take as much money as you can pay back if you don't want to loose the properties you guarantee with.