Loan

A loan is a type of debt. The borrower agrees to repay the lender the sum of money loaned, at a particular time. It is often paid part by part over time, in order to clear the debt.

Acting as a provider of loans is one of the main tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a main source of funding. Bank loans and credit are one way to increase the money supply.