A loan is a financial transaction where one party (lender) gives money or assets to another party (borrower) with the expectation that the borrowed amount will be repaid with interest over an agreed-upon period of time. Loans are commonly used by individuals and businesses to finance large purchases or investments that they may not be able to afford with their available funds. There are different types of loans, such as personal loans, home mortgages, student loans, and business loans, each with its own terms and conditions.