An agreement where a borrower receives money from a lender, agreeing to repay the money in future.
The initial sum of money loaned to the borrower is called the principal. Usually, the lender charges a fee for lending the money, and this fee is referred to as interest.
The loaned money is typically paid back through regular payments. When each payment pays some of the interest and some of the principal, they are known as blended payments.
If the regular payments are all for the same amount, the loan is known as an annuity.
One common type of loan is the mortgage loan, which is used to finance the buying of a home.