A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the and the . In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount. The loan is genera… (More on Loan)