What is a loan?

Answer 1

When you have something and you give it to someone else to use for a time, you are 'loaning' it to them.

Thus 'a loan' is the term used to describe an amount of money lent to you by a bank.

You will be expected to pay this money back together with a little more money (called interest) over a fixed period that you will agree with the bank. When money is given to you with the expectation of repayment with interest on it. A loan is the same thing as "borrowing" or "to have a lend of". You can loan items such as books or cash.

Answer 2

A bank loan is money that is owed to a lending institution. This can be, for example, a bank or a credit union.