Loan is a contract between lender and borrower in which an arrangement is made to provide money to borrower by the lender in the condition that the borrower will repay the amount along with interest after some times. Lender fixed the duration of repayment before giving loan the borrower. Loan is a type of debt for the borrower.
A person can take loans come from individuals i.e. his relatives or friends, corporations, financial institutions and governments. There are various types of loans such as House loan, Car Loan, Education Loan. Now a day loan is very important for everyone especially for those who don’t have sufficient money to start their business or complete their higher education.
