arzeeka

💡 What’s a Loan? A loan is when you borrow money from a lender (like a bank or financial institution) with a promise to pay it back over time. You’ll repay the original amount — called the principal — plus an extra fee known as interest. The repayment happens over a set period, and you usually make monthly payments. Loan  Key Parts of a Loan: - Principal : The amount you borrow. - Interest Rate : The cost of borrowing, shown as a percentage. - Repayment Term : The time you have to pay it back — could be months or years. - Monthly Payments : Regular payments that cover both the principal and interest. - Collateral : (like your car or house) you offer as security — only for certain types of loans. 🧭 Types of Loans Loans come in different forms depending on what you need and how you plan to repay. Based on Collateral: - Secured Loans require you to offer something valuable as backup. If you don’t repay, the lender can take that asset. These loans usually have lower interest rates a...