What is a loan from the bank?

A loan is a sum of money that is borrowed by an individual or business from a lender (typically a financial institution or another party with money). How Does a Loan Work?

What is loan repayment?

Loan repayment is the process of paying back a loan—typically on a monthly or quarterly basis and in fixed payment amounts. A portion of each payment goes toward the interest, and the remaining portion is applied against the loan principal. Payments must be made in accordance with the terms of the loan, as established in the loan agreement.

What is a loan shark?

A loan shark is a slang term for predatory lenders who give informal loans at extremely high interest rates, often to people with little credit or collateral. Because these loan terms may not be legally enforceable, loan sharks have sometimes resorted to intimidation or violence in order to ensure repayment.

What is the difference between a loan payment and a term?

Installment payments: Loans are usually repaid at a regular cadence, typically monthly, to the lender. Your monthly payment is commonly a fixed amount. Term: The loan term is how much time you have to repay the loan in full. Depending on the type of loan, the term can range from a few weeks to several years.