A loan is a sum of money lent to an individual, company, or government – typically by a financial institution but it can also be other lending sources including companies –under a contract that confirms the loan amount, stipulates the interest rate to be paid, the interest-rate format (fixed or floating-rate), the frequency of interest payments, the maturity (tenor) of the loan and other terms and conditions. Loans can be unsecured or secured by collateral (typically a cheaper form of finance).

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